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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 28, 2023 09:14 AM (EDT)
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 Southern Trust Insurance Company (Southern Trust) (Macon, GA).
The Credit Ratings (ratings) of Southern Trust have been placed under review with developing implications following the recent announcement that the company signed a share and interest purchase agreement with Arbour National (Arbour). Once closed, Arbour will have controlling interest of both Southern Trust and Southern Specialty Underwriters, LLC, which are subsidiaries of Southern Trust Corporation. Arbour will also contribute capital directly into Southern Trust to support ongoing business plans. As part of the agreement, Southern Trust will continue to operate independently and the current CEO & president will remain a significant shareholder and board member. The under review with developing implications status reflects the potential for key overall balance sheet strength considerations to be solidified post close, while also reflecting the need to evaluate medium term strategic expectations after the transaction is finalized. The ratings will remain under review pending regulatory approval and until AM Best can fully analyze the impact of Southern Trust’s post transaction rating fundamentals. The transaction is expected to close in 2023.
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.