Best’s News & Research Service - May 02, 2023 03:17 PM (EDT)
AM Best Comments on Credit Ratings of American Life & Security Corp. Following Definitive Merger Agreement
- May 02, 2023 03:17 PM (EDT)
Oldwick //BestWire// - AM Best has commented that the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of American Life & Security Corp. (American Life) (headquartered in Lincoln, NE), both of which have a stable outlook, remain unchanged following the May 1, 2023 announcement that American Life’s parent, Midwest Holdings Inc. (Midwest), and Antarctica Capital (Antarctica) have entered into a definitive merger agreement.
Under the agreement, an affiliate of Antarctica will acquire Midwest in an all-cash transaction valued at approximately $100 million. This transaction is expected to provide American Life with additional resources to fully capitalize its platform, business momentum and market opportunities.
Antarctica also brings to Midwest its investment management expertise and asset origination capabilities. Following the closing, American Life will continue to be led by its current leadership team and maintain its current business strategy. The transaction is expected to close in the second half of 2023, subject to certain customary closing conditions, including the receipt of insurance regulatory approvals and approval by Midwest’s shareholders. AM Best will continue to monitor American Life’s operating performance and ability to execute on its current strategy and projections post-transaction.
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.