Best’s News & Research Service - March 03, 2023 10:23 AM (EST)
AM Best Comments on Credit Ratings of Harford Mutual Insurance Group’s Members Following Announced Merger Agreement
- March 03, 2023 10:23 AM (EST)
Oldwick //BestWire// - AM Best has commented that the Credit Ratings (ratings) of the members of Harford Mutual Insurance Group (Harford) remain unchanged following an announced merger agreement with ClearPath Mutual Insurance Company (ClearPath).
Harford is comprised of Harford Mutual Insurance Company, Firstline Insurance Company and 1842 Insurance Company, all of which are domiciled in Maryland.
ClearPath will re-domesticate to Maryland and take on a mutual holding company structure before converting to a stock subsidiary insurer and merging into Harford.
The transaction is expected to close sometime in second-quarter 2023. The transaction has been approved by the policyholders of Harford and ClearPath. The transaction is contingent upon approval from the Maryland Insurance Administration and the Kentucky Department of Insurance.
As a result of the proposed agreement, AM Best anticipates that Harford’s Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) will remain unchanged. AM Best expects that Harford’ s balance sheet strength assessment of strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management will remain within levels supportive of these current assessments. However, AM Best will further evaluate the ratings and outlooks as it contemplates the impact of the merger on the group’s business plan and strategy. Additionally, AM Best anticipates that effective Jan. 1, 2024, ClearPath will be included in Harford Mutual Insurance Company’s quota share reinsurance contract.
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.