Best’s News & Research Service - February 20, 2025 11:57 AM (EST)
AM Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of Sentry Insurance Group’s New Members Following Acquisition
- February 20, 2025 11:57 AM (EST)
//BestWire// - AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings to “aa-” (Superior) from “a+” (Excellent) of Permanent General Assurance Corporation, Permanent General Assurance Corporation of Ohio, and General Automobile Insurance Company. The outlook assigned to these Credit Ratings (ratings) is stable. These companies collectively do business as The General (headquartered in Nashville, TN) and are newly added subsidiaries of Sentry Insurance Group (Sentry).
The General’s ratings reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Sentry acquired The General from American Family Insurance Group for approximately $1.0 billion in cash and consideration. Including the value of assumed liabilities and required capital, the total transaction value was $1.7 billion. The transaction closed on Dec. 31, 2024. The General and Sentry, through its Dairyland brand, have served the non-standard auto (NSA) market for more than 60 years. The General has built a strong reputation in direct-to-consumer NSA, while Dairyland is known for serving customers through its independent agent network. For customers, this will mean more flexibility in choosing how they want to purchase insurance, whether through an agent or directly.
The ratings of The General reflect the strategic position its entities will hold within the organization and the execution of an inter-company quota share agreement. 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.