AM Best Comments on Credit Ratings of Intact Financial Corporation Group Members Following Acquisition Announcement
August 16 2019 - 5:08PM
Business Wire
AM Best has commented that the Financial Strength Rating
of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-”
for the members of Intact Financial Corporation (Intact) (Toronto,
Ontario, Canada) [TSX:IFC] remain unchanged following the
announcement that Intact will acquire The Guarantee Company of
North America and its subsidiary, The Guarantee Company of North
America USA. These companies collectively are known as the
Guarantee Companies, and are property/casualty writers in the
United States and Canada.
Intact’s anticipated post-transaction risk-adjusted
capitalization and leverage measures are expected to remain in line
with AM Best’s current assessment of its balance sheet strength. AM
Best also believes that the addition of the Guarantee Companies
will contribute further to the growing geographic, product line and
distribution diversification of Intact.
While there is execution risk associated with a transaction of
this size and scope, this risk is somewhat mitigated by Intact’s
historical track record of successful acquisition and integration
with other similar entities.
AM Best expects the transaction to be completed in the fourth
quarter of 2019, pending regulatory approval in the United States
and Canada. Intact’s ratings will be continue to be monitored on an
ongoing basis until the transaction concludes, at which time AM
Best will conduct discussions with management regarding the final
terms of the transaction and its impact on balance sheet strength,
operating performance, business profile and enterprise risk
management.
This press release relates to Credit Ratings that have been
published on AM 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 see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media use of
Best’s Credit Ratings and AM Best press releases, please view Guide
for Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20190816005442/en/
Gordon McLean Senior Financial Analyst +1 908
439 2200, ext. 5304 gordon.mclean@ambest.com
Raymond Thomson, CPCU, ARe, ARM
Director +1 908 439 2200, ext. 5621
raymond.thomson@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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