Best’s News & Research Service - September 30, 2015 10:51 AM (EDT)
A.M. Best Places Ratings of Republic Underwriters Insurance Company and Its Subsidiaries Under Review With Positive Implications
Oldwick //BestWire// - A.M. Best has placed under review with positive implications the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of “a-” of Republic Underwriters Insurance Company (Dallas, TX) and its subsidiaries, collectively known as the Republic Group. (See below for a detailed list of companies.)
The rating actions for the Republic Group follow the announcement that these entities will be acquired by AmTrust Financial Services, Inc. (AmTrust) for approximately $233 million.
The positive implications for Republic Group reflects AmTrust’s role as a large multi-national property/casualty insurance company that has a history of success with company acquisitions. At June 30, 2015, AmTrust had approximately $6 billion in premium and almost $16 billion in assets. AmTrust’s strong balance sheet and efficient operating platform will provide an excellent growth opportunity for Republic Group.
The ratings will remain under review pending regulatory approval and the close of the deal, which is anticipated in first half of 2016.
The FSR A- (Excellent) and the ICR “a-” have been placed under review with positive implications for the following property/casualty subsidiaries:
- Republic Lloyds
- Southern Insurance Company
- Republic Underwriters Insurance Company
- Southern County Mutual Insurance Company
- Republic-Vanguard Insurance Company
- Republic Fire and Casualty Insurance Company
- Southern Underwriters Insurance Company
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.
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