Press Release - AUGUST 16, 2019

AM Best Places Credit Ratings of The Guarantee Company of North America and Subsidiary Under Review with Positive Implications


CONTACTS:
 Gordon McLean
Senior Financial Analyst
+1 908 439 2200, ext. 5304
gordon.mclean@ambest.com

Raymond Thomson, CPCU, ARe, ARM
Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - AUGUST 16, 2019
AM Best has placed under review with positive implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of The Guarantee Company of North America (Toronto, Ontario, Canada) and its subsidiary, The Guarantee Company of North America USA (Southfield, MI), collectively referred to as the Guarantee Companies. These companies are wholly owned subsidiaries of Princeton Holdings Limited.

The Credit Rating (rating) actions follow the announcement that Intact Financial Corporation (Intact) has entered into an agreement to acquire the Guarantee Companies from Princeton Holdings Limited. The transaction is subject to customary closing conditions, including regulatory approvals in the United States and Canada, and is expected to close in the fourth quarter of 2019.

The under review with positive implications status reflects the need for AM Best to further and fully assess the financial and operational impacts of the acquisition. In addition, the positive implications considers the successful track record that Intact has established with similar transactions in the past, and the benefits of operational synergies with Intact and its subsidiary companies. AM Best will continue to hold discussions with Intact and Guarantee Companies’ management and monitor the Guarantee Companies’ balance sheet strength, operating performance, business profile and enterprise risk management 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.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.


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