A.M. Best has placed under review with positive implications the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of “a-” of Dallas-based Republic Underwriters Insurance Co. and its subsidiaries, collectively known as the Republic Group.
The rating actions for the Republic Group follow the announcement that these entities will be acquired by AmTrust Financial Services Inc. (AmTrust) for approximately $233 million.
The positive implication for Republic Group reflects AmTrust’s role as a large multi-national property/casualty insurance company that has a history of success with company acquisitions.
At June 30, 2015, AmTrust had approximately $6 billion in premium and almost $16 billion in assets. AmTrust’s strong balance sheet and efficient operating platform will provide an excellent growth opportunity for Republic Group.
The ratings will remain under review pending regulatory approval and the close of the deal, which is anticipated in first half of 2016.
The FSR A- (Excellent) and the ICR “a-” have been placed under review with
positive implications for the following property/casualty subsidiaries:
- Republic Lloyds
- Southern Insurance Company
- Republic Underwriters Insurance Company
- Southern County Mutual Insurance Company
- Republic-Vanguard Insurance Company
- Republic Fire and Casualty Insurance Company
- Southern Underwriters Insurance Company
Source: A.M. Best
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