Standard & Poor’s Ratings Services reported that ratings on the members of State Auto Group (A/Stable/) were not affected by State Auto’s recently completed purchase of Beacon Insurance Co.
With the acquisition, Texas becomes State Auto’s 29th state of operation. Beacon writes about $50 million in direct written premium through more than 350 independent insurance agents in Arkansas and Texas.
S&P said ratings on the members of State Auto Group reflect its continued maintenance of its franchise in the personal and commercial lines insurance industry, continued strengthening of capitalization, and strong earnings performance. These factors are in part offset by the group’s long-term strategic growth goals, which will be reached through acquisitions. This growth will expose its operations to integration risk, cause core markets to experience increased competition, and slow the group’s progress in developing its competitive position.
Source: Standard & Poor’s
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