Best’s News & Research Service - October 01, 2021 01:41 PM (EDT)
AM Best Places Credit Ratings of Members of AmFed Insurance Group Under Review With Positive Implications
- October 01, 2021 01:41 PM (EDT)
Oldwick //BestWire// - AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of AmFed National Insurance Company and its 100% reinsured subsidiaries, AmFed Casualty Insurance Company and AmFed Advantage Insurance Company, collectively referred to as AmFed Insurance Group (AmFed). All companies are domiciled in Ridgeland, MS.
The under review with positive implications status reflects the announcement on Sept. 30, 2021, of a definitive agreement under which Ascot Insurance Company (AIC) will acquire all of the outstanding common stock of AmFed. AIC’s intermediate parent company, Ascot Group Limited (Ascot), is a property and specialty (re)insurance group.
AmFed will become a wholly owned subsidiary of AIC and will continue to operate under the AmFed brand. AM Best believes that AmFed will derive operational and financial benefits from being part of the larger Ascot organization.
The transaction is subject to customary closing conditions, including regulatory approvals. The ratings will remain under review until the close of the transaction and a review by AM Best of the post-transaction details. The transaction is expected to close in the fourth quarter of 2021.
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 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.