AM Best says the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Insurors Indemnity Companies (Insurors Indemnity), based Waco, Texas, remain unchanged following the recent announcement that the company plans to purchase Colonial Lloyds.
Colonial Lloyds is headquartered in Fort Worth, Texas. It has been serving the Texas homeowners insurance market since 1981.
The transaction is expected to close before the end of 2021. Both companies are based in Texas.
On June 14, 2021, Insurors Indemnity announced that it has entered into a definitive agreement to acquire residential property insurer Colonial Lloyds. Colonial Lloyds’ gross premium written is approximately $7.5 million with shareholders’ equity of approximately $8.5 million at the end of 2020.
Insurors Indemnity will finance the acquisition with existing cash resources.
AM Best anticipates Insurors Indemnity will continue to maintain supportive risk-adjusted capitalization and overall balance sheet strength, which is assessed as very strong. Insurors Indemnity’s strong operating performance, limited business profile and appropriate enterprise risk management are not expected to be impacted by the transaction.
Following the close of the transaction, AM Best will continue to discuss its progress with management and assess its effects on Insurors Indemnity’s operations.
Insurors Indemnity markets its property/casualty and surety products in Arkansas, Arizona, New Mexico, Nevada, Louisiana, Oklahoma, Texas and Utah through independent agents. It also offers premium finance through its subsidiary Roadrunner Premium Finance Company.
Source: AM Best
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