AM Best Places Credit Ratings of Certain Members of American Family Insurance Group Under Review With Positive Implications Following Sale Announcement
- September 18, 2024 09:19 AM (EDT)
//BestWire// - 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+” (Excellent) of Permanent General Assurance Corporation, Permanent General Assurance Corporation of Ohio, and General Automobile Insurance Company. These companies collectively do business as The General (domiciled in Nashville, TN) and are subsidiaries of PGC Holdings Corp. (PGC), an affiliate of American Family Insurance Group (American Family).
This Credit Rating (action) follows the Sept. 12, 2024, announcement that American Family has signed a definitive agreement to sell PGC Holdings and its subsidiaries to Sentry Insurance Company (Sentry) for approximately $1.1 billion in cash and consideration. Including the value of assumed liabilities and required capital, the total transaction value will be $1.7 billion. The General has a strong reputation in direct-to-consumer non-standard auto (NSA) insurance while the Dairyland brand of Sentry serves NSA customers through its independent agent network. The transaction is expected to close by year-end, pending regulatory approval.
The under review with positive implications status reflects the understanding that Sentry will provide significant operational and financial support to The General.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments. 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.