FEBRUARY 26, 2021 12:09 PM (EST)
AM Best Removes From Under Review With Positive Implications, Upgrades Credit Ratings of National General Holdings Corp and Subs
|Kate Steffanelli |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 26, 2021 12:09 PM (EST)
AM Best has removed from under review with positive implications and upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” from “bbb-” of National General Holdings Corp. (NGHC) (headquartered in New York, NY). Additionally, AM Best has removed from under review with positive implications and upgraded certain Long-Term Issue Credit Ratings (Long-Term IRs) of NGHC. At the same time, AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A- (Excellent) and the Long-Term ICRs to “aa ” from “a-” of Integon National Insurance Company (Winston-Salem, NC) and its reinsured affiliates. All of the operating insurance entities are collectively referred to as National General Group or the group. The outlook assigned to these Credit Ratings (ratings) is stable.
Concurrently, AM Best has affirmed the Long-Term IRs of two tranches of senior unsecured notes of NGHC. The outlook of these ratings is stable.
(See below for a detailed list of the companies and ratings).
The ratings reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management. The rating actions consider National General Group’s inclusion in an intercompany reinsurance treaty, which consists of affiliated insurance entities within the Allstate organization. This agreement became effective Jan. 4, 2021.
The FSR has been removed from under review with positive implications and upgraded to A+ (Superior) from A- (Excellent) and the Long-Term ICRs to “aa” from “a-”, with stable outlooks assigned for the following insurance subsidiaries of National General Holdings Corp.:
The following Long-Term IRs have been affirmed with stable outlooks:
National General Holdings Corp.(Guaranteed by The Allstate Corporation)—
— “a” on $100 million 6.75% senior unsecured notes, due 2024
— “a” on $250 million 6.75% senior unsecured notes, due 2024
The following Long-Term IRs have been removed from under review with positive implications, upgraded and assigned stable outlooks:
National General Holdings Corp.—
— to “a-” from “bb+” on $100 million 7.625% subordinated notes, due 2055 ($72 million outstanding)
— to “bbb+” from “bb” on $200 million 7.5% preferred stock
The following indicative Long-Term IRs for securities available under the shelf registration have been withdrawn:
National General Holdings Corp.—
— “bbb-” on senior unsecured debt
— “bb+” on subordinated debt
— “bb” on preferred stock
— “bb” on junior subordinated
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.