MARCH 30, 2021 01:53 PM (EDT)
AM Best Withdraws Credit Ratings of Southern County Mutual Insurance Company
|Adib Nassery |
Senior Financial Analyst
+1 908 439 2200, ext. 5205
+1 908 439 2200, ext. 5138
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 30, 2021 01:53 PM (EDT)
AM Best has withdrawn the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Southern County Mutual Insurance Company (Southern County) (Dallas, TX). The Credit Ratings (ratings) had stable outlooks. Berkshire Hathaway Inc.’s subsidiary, GEICO Corporation (GEICO), acquired Republic Group No. Two Company, a subsidiary of Republic Companies Group, Inc. (operating as The Republic Group), in January 2021. As part of the transaction, GEICO acquired 100% of the voting shares of Republic Group No. Two Company and control of Southern County. GEICO management has indicated its intention to reinsure Southern County 100% to an affiliate; however, the reinsurance agreement has not yet been put into effect. The current ratings of Southern County are being withdrawn until the reinsurance agreement can be completed.
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 Guide to 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.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.