APRIL 19, 2021 04:57 PM (EDT)
AM Best Assigns Issue Credit Rating to Sammons Financial Group, Inc.’s Senior Unsecured Notes
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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 19, 2021 04:57 PM (EDT)
AM Best has assigned a Long-Term Issue Credit Rating of “a-” to the $850 million 3.35% 10-year senior unsecured notes issued by Sammons Financial Group, Inc. (SFG, Inc.) (Delaware), an intermediate holding company indirectly owned by Sammons Enterprises, Inc. (SEI). The outlook assigned to this Credit Rating (rating) is stable. All other ratings of SEI and its subsidiaries are unchanged.
The proceeds from this debt issuance are expected to be used for general corporate purposes, including financing business growth at SFG, Inc.’s two insurance operating subsidiaries—Midland National Life Insurance Company and North American Company for Life and Health Insurance. AM Best notes that SFG’s financial leverage will increase to approximately 17%, which is well within AM Best’s guidelines for its current rating. AM Best views SFG Inc.’s debt-servicing capabilities favorably, with sufficient liquidity to service its debt, a well-laddered debt maturity structure and strong interest coverage.
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.