CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 08, 2019 04:03 PM (EDT)
AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of Topa Insurance Company (Calabasas, CA) and its subsidiary, Dorchester Insurance Company, Ltd. (U.S. Virgin Islands). These companies, which collectively are referred to as Topa Insurance Group (Topa), are wholly owned subsidiaries of Topa Insurance Group, Inc. (TIG).
The Credit Rating (rating) actions follow the announcement that Altamont Capital Partners has entered into a definitive agreement to acquire TIG from Topa Equities Ltd. Post-closing, Topa Equities Ltd. will hold a minority equity interest in the group. The transaction is subject to customary closing conditions, including regulatory approvals.
The under review with developing implications status reflects the need for AM Best to fully assess the financial and operational impacts of the acquisition, as well as review the group’s progress on strategic business initiatives. There remains a level of execution risk within the strategic initiatives. At the completion of the acquisition, and within all scenarios considered, the most likely outcome would be affirmation of the ratings with negative outlooks, given Topa’s recent operating performance. AM Best will continue to hold discussions with Topa’s management and monitor the group’s balance sheet strength, operating performance, business profile and enterprise risk management.
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.