A.M. Best Co. has affirmed the under-review status of Cleveland-based THI Holdings Group and revised the implications from negative to positive.
The positive implications reflect the financial commitment of Nationwide Mutual Insurance Co. (NMIC) and its intention to eventually increase its support through a reinsurance quota share arrangement. THI is a wholly owned subsidiary of THI Holdings Inc. and is currently rated “A-” (Excellent).
On March 28, 2003, NMIC signed a definitive agreement to purchase THI Holdings Inc. and its seven operating insurance companies. The purchase agreement is binding; however, the transaction will be considered final only upon receipt of regulatory approval. NMIC, the lead company in the Nationwide Group, and its operating subsidiaries are currently rated “A+” (Superior). The financial strength ratings of the member companies of the Nationwide Group are unaffected by this transaction.
THI is a leading writer of nonstandard auto insurance, with net written premiums of approximately $265 million in 2002. The member companies use a distribution network of approximately 7,500 independent agents in 21 states. Nationwide expects the nonstandard auto book of business underwritten by THI to complement its existing nonstandard product offerings.
Following the close of the transaction and further discussions with management, A.M. Best will update the financial strength rating of THI Holdings Group.
Topics AM Best
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