Best’s News & Research Service - July 24, 2025 10:04 AM (EDT)
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Direct General Life Insurance Company
- July 24, 2025 10:04 AM (EDT)
//BestWire// - AM Best has removed from under review with developing implications and affirmed 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). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Direct General’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also include the enhancement, in the form of lift, from the new ultimate parent Nationwide Mutual Insurance Company (Nationwide). Nationwide completed its acquisition of Direct General from The Allstate Corporation (Allstate) [NYSE: ALL] on July 1, 2025. The transaction included the sale of Allstate’s entire group medical stop-loss book of business, which was transferred from other Allstate entities to Direct General prior to closing. As part of the transaction, a capital contribution was made to Direct General to support the larger premium base. The stop-loss business, coupled with fee income from plan administration, is projected to be a stable source of income for Nationwide in the coming years. This business is also deemed to be a positive complement to the existing product offerings and risk profile of Nationwide. Direct General will benefit from Nationwide’s operation capabilities and financial strength as the stop-loss business continues to grow.
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.