A.M. Best Places Ratings of American Strategic Insurance Corp and Its Affiliates Under Review With Positive Implications
December 18 2014 - 9:35AM
Business Wire
A.M. Best has placed under review with positive
implications the financial strength rating (FSR) of A (Excellent)
and the issuer credit ratings (ICR) of “a” of American Strategic
Insurance Corp (ASI) (St. Petersburg, FL) and its affiliates
following the announcement that The Progressive
Corporation (Progressive)(NYSE:PGR) has agreed to acquire a
controlling position in ARX Holding Corp., the parent
company of ASI and its affiliates, for approximately $875 million
in cash. Following the close of the transaction, Progressive’s
interest in the company will be approximately 67%, up from the 5%
interest it’s held since 2012. ASI will continue to operate as a
separate company under its current management team and will benefit
from its association with one of the leading personal automobile
writers in the United States. The transaction is expected to close
by April 1, 2015, subject to closing conditions.
The positive rating implications reflect the financial and
operational enhancements the acquisition may provide to ASI over
the long-term. In addition, ASI’s current distribution network will
be broadened through Progressive’s extensive market
penetration.
The under review status will remain pending Departmental
approvals, further discussions with management and close of the
transaction.
The FSR of A (Excellent) and the ICRs of “a” have also been
placed under review with positive implications for American
Strategic Insurance Corp and its following affiliates:
- American Capital Assurance
Corp
- ASI Assurance Corp
- ASI Home Insurance Corp
- ASI Lloyds
- ASI Preferred Insurance
Corp
- ASI Select Insurance Corp
The methodology used in determining these ratings is Best’s
Credit Rating Methodology, which provides a comprehensive
explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Best’s
Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Rating Members of Insurance Groups
- Catastrophe Analysis in A.M. Best
Ratings
- Equity Credit for Hybrid
Securities
- Risk Management and the Rating Process
for Insurance Companies
- Understanding BCAR for
Property/Casualty Insurers
This press release relates to rating(s) that have been
published on A.M. Best's website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please visit A.M.
Best’s Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
A.M. BestAngelo Lozano, 908-439-2200, ext.
5169Financial Analystangelo.lozano@ambest.comorRick
Decker, 908-439-2200, ext. 5423Assistant Vice
Presidentrick.decker@ambest.comorChristopher Sharkey,
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
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