Best’s News & Research Service - April 19, 2016 02:13 PM (EDT)
A.M. Best Maintains Under Review Status of Members of Republic Group Following Acquisition by AmTrust Financial Services, Inc.
- April 19, 2016 02:13 PM (EDT)
Oldwick //BestWire// - A.M. Best has maintained the under review with positive implications status of the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of Republic Underwriters Insurance Company (Dallas, TX) and its subsidiaries and controlled affiliates (collectively referred to as the Republic Group) following the acquisition of the companies by AmTrust Financial Services, Inc. (AmTrust) [NASDAQ: AFSI]. See below for a detailed listing of the companies.
The transaction closed on April 18, 2016. The ratings will remain under review until A.M. Best concludes its discussions with management and assessment of the future business plans. It is expected that various expense synergies related to reinsurance and systems will substantially reduce operating costs. In addition, AmTrust’s strong balance sheet and efficient operating platform will provide growth opportunities for the Republic Group business.
The FSR of A- (Excellent) and the ICRs of “a-” remain under review with positive implications for the following property/casualty subsidiaries and controlled affiliates:
- Republic Underwriters Insurance Company
- Republic-Vanguard Insurance Company
- Southern Insurance Company
- Republic Fire and Casualty Insurance Company
- Southern Underwriters Insurance Company
- Republic Lloyds
- Southern County Mutual 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 see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.