CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 12, 2009 12:00 AM (EDT)
A.M. Best Co. has commented that the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Attorneys Liability Protection Society, Inc., A Risk Retention Group (ALPS) (Missoula, MT), remain unchanged at this time.
This follows the announcement that ALPS has reached a definitive stock purchase agreement to acquire Southern Title Insurance Company (Southern Title), a regionally based title insurance underwriter primarily serving the southeastern United States. In the transaction, ALPS will purchase 100% of the outstanding capital stock of Investors Southern Corporation, the holding company of Southern Title and affiliated subsidiaries, and certain existing joint ventures for $2.25 million in cash. The transaction is subject to regulatory approval and is expected to close in early July.
With the acquisition of Southern Title, ALPS will diversify into the title insurance line of business and will look to unlock synergies between the two companies. Integration risk should be minimal as Southern Title is expected to operate on a stand-alone basis, with the current management team remaining in place.
While A.M. Best recognizes the potential benefits of this transaction and does not expect it to put strain on ALPS' risk-adjusted capitalization, A.M. Best will continue to closely monitor Southern Title's operating performance, given the prolonged turmoil in the housing market.
On June 8, 2009, A.M. Best affirmed the FSR of A- (Excellent) and ICR of "a-" of ALPS.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.