Best’s News & Research Service - February 05, 2025 03:13 PM (EST)
AM Best Places Credit Ratings of Direct General Life Insurance Company Under Review With Developing Implications
- February 05, 2025 03:13 PM (EST)
//BestWire// - AM Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Direct General Life Insurance Company (Direct General) (Orangeburg, SC).
This follows the Jan. 30, 2025 announcement that The Allstate Corporation (Allstate) [NYSE: ALL] entered into a definitive agreement to sell Direct General for $1.25 billion to a subsidiary of Nationwide Mutual Insurance Company (Nationwide). Prior to close of the sale, all of the group health stop-loss business within Allstate, which amounts to approximately $800 million of revenues on an annual basis, will be transferred to Direct General; any non-group health business will be transferred to other entities within Allstate. The Credit Ratings of Direct General will remain under review until the transaction closes and AM Best has a discussion with Nationwide on its level of support for Direct 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.