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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 10, 2019 02:09 PM (EDT)
AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” for The Members Insurance Company (TMIC) (Charlotte, NC). Additionally, AM Best has placed under review with positive implications the FSR of B++ (Good) and the Long-Term ICR of “bbb” for Universal Insurance Company (UIC) (Winston-Salem, NC). These companies are wholly owned subsidiaries of Carolina Motor Club, Inc. (CMC).
The Credit Rating (rating) actions follow the announcement that CMC has entered into a definitive agreement to merge with and into The Auto Club Group (ACG). The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first quarter of 2020.
The under review with positive implications status reflect the need for AM Best to further and fully assess the financial and operational impacts of the merger. In addition, the positive implications consider the successful track record that ACG has established with similar transactions in the past and the benefits of operational synergies with other subsidiary companies. AM Best will continue to hold discussions with CMC’s management and monitor the balance sheet strength, operating performance, business profile and enterprise risk management of both insurance companies through the close of the transaction.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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