A.M. Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of National Farmers Union Property and Casualty Co. (NFU P&C) in Sun Prairie, Wisconsin.
These ratings were placed under review with negative implications following the announcement by QBE Insurance Group Limited (QBE) (Australia) that it has entered an agreement to sell NFU P&C to National General Holdings Corp. (NGHC), headquartered in New York, New York.
The transaction is expected to close in the first half of 2019.
NFU P&C consists of personal insurance and farmowner business, as well as its telecommunications insurance program. The agreement enables QBE’s North America unit to focus on its specialty, core commercial, program, crop and reinsurance businesses, along with operations at Westwood Insurance Agency Inc., QBE’s California-based personal lines agency. The acquisition provides NGHC an opportunity to further its position in personal lines and to expand its distribution network.
The ratings will remain under review pending completion of the transaction. Upon NFU P&C’s inclusion into the National General Group, its ratings may be downgraded as the group’s members currently maintain an FSR of A- (Excellent).
Topics Agribusiness Property AM Best Property Casualty Casualty
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