MAY 26, 2023 12:16 PM (EDT)
AM Best Places Credit Ratings of Encova Life Insurance Company Under Review With Positive Implications
|Joni Cerbone |
Senior Financial Analyst
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Associate Director, Public Relations
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Senior Public Relations Specialist
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FOR IMMEDIATE RELEASE
OLDWICK - MAY 26, 2023 12:16 PM (EDT)
AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Encova Life Insurance Company (Encova Life) (Columbus, OH).
This follows the May 22, 2023 announcement by Pan-American Life Insurance Company (PALIC) that it has entered into an agreement to acquire Encova Life and merge it into PALIC. The under review with positive implications status reflects the potential benefits Encova Life would receive from the acquisition. According to the announcement, all Encova Life policies will be assumed by PALIC following the merger. The acquisition is pending regulatory approvals and expected to close in late 2023 or early 2024. These Credit Ratings will remain under review until the close of the transaction and AM Best’s review of post-transaction details.
Encova Life is a wholly owned subsidiary of Encova Mutual Insurance Group, Inc., a mutual holding company whose principal operations comprise the property-casualty insurance operations of the Encova Mutual Insurance Group, with its members currently having an FSR of A (Excellent) and a Long-Term ICR of “a” (Excellent) with stable outlooks.
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.