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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 01, 2017 02:03 PM (EST)
A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the $20 million 6.26% surplus notes due Dec. 31, 2025, issued by Erie Family Life Insurance Company (EFL) (Erie, PA) on Dec. 30, 2005 to Erie Insurance Exchange. The outlook assigned to the Credit Rating is stable.
The surplus notes offering is a private offering and is not subject to a shelf registration statement filed with the Securities and Exchange Commission. A.M. Best notes EFL’s pro forma financial leverage on a statutory basis is expected to remain below 15% in the near to medium term. Coverage is viewed as strong given the company’s historical profitability trends. A.M. Best believes EFL’s financial leverage and interest coverage will remain well within A.M. Best’s guidelines to support its current ratings.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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