Best’s News & Research Service - October 12, 2023 03:57 PM (EDT)
AM Best Places Credit Ratings Under Review With Developing Implications of Fidelity Life Association, Legal Reserve Life Ins Co
- October 12, 2023 03:57 PM (EDT)
Oldwick //BestWire// - AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Fidelity Life Association, A Legal Reserve Life Insurance Company (Fidelity Life) (Des Plaines, IL). Fidelity Life is a wholly owned subsidiary of Vericity, Inc. (Vericity).
The Credit Ratings (ratings) actions follow the announcement that Vericity and iA American Holdings, Inc., a subsidiary of iA Financial Corporation, Inc. signed a definitive merger agreement whereby iA American Holdings, Inc will acquire all the outstanding shares of common stock of Vericity in an all-cash transaction of approximately $170 million. The sale has been approved by Vericity’s board of directors. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2024.
The ratings will likely remain under review with developing implications pending completion of the acquisition and until AM Best can complete its assessment of Fidelity Life’s post-acquisition rating fundamentals.
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.