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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 26, 2015 02:56 PM (EDT)
A.M. Best has placed under review with positive implications the financial strength ratings (FSR) of A- (Excellent) and the issuer credit ratings (ICR) of "a-" of Atlantic Casualty Insurance Company and Little River Insurance Company, collectively referred to as Strickland Insurance Group (Strickland). Both companies are headquartered in Goldsboro, NC.
The under review rating action follows Strickland's announcement that it has entered into a definitive agreement to be acquired by Auto-Owners Insurance Company (Auto-Owners), domiciled in Lansing, MI. The positive implications reflect the expected benefits Strickland will receive from being part of a much larger, strongly capitalized insurance organization. Strickland is also expected to realize some economies of scale through the new affiliation with Auto-Owners.
Strickland provides specialty lines property and casualty (P/C) insurance products and innovative services on an excess & surplus platform. Principal lines of business include general liability, commercial package and commercial auto (North Carolina only).
Auto-Owners is comprised of five P/C companies and one life/health/annuity insurer. The group is recognized for exceptional strength and stability and is among the nation's largest insurers. Auto-Owners views the proposed acquisition of Strickland as a means of expanding its insurance platform within a niche business segment.
The ratings will remain under review with positive implications pending the completion of the acquisition by Auto-Owners which is targeted for the fourth quarter of 2015, and following regulatory approval and a meeting between the company and A.M. Best.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.