Best’s News & Research Service - February 07, 2020 03:22 PM (EST)
AM Best Comments on the Credit Ratings of Fidelity & Guaranty Life Holdings, Inc. Following Acquisition Announcement
- February 07, 2020 03:22 PM (EST)
Oldwick //BestWire// - AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of the key life/health subsidiaries of Fidelity & Guaranty Life Holdings, Inc. (FGLH) (Delaware), collectively referred to as Fidelity & Guaranty Life Group, remain unchanged after the announcement of a definitive agreement for the companies to be acquired by Fidelity National Financial, Inc. (FNF). The Credit Ratings of Fidelity & Guaranty Life Group were affirmed on Nov. 6, 2019.
FNF, which is currently a shareholder of FGLH, is a leading provider of title insurance and transaction services to the real estate and mortgage industries. Fidelity & Guaranty Life Group will continue to operate under its existing structure as a subsidiary of FNF with the management team and all legal entities intact. AM Best expects that Fidelity & Guaranty Life Group may benefit from enhanced financial flexibility and distribution opportunities under its new parent going forward. Total consideration is estimated to be $2.7 billion, funded by a mix of cash and stock, and the transaction is expected to close in the second or third quarter of 2020, pending required regulatory approvals and the satisfaction of other customary closing conditions.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.