AM Best Places Credit Ratings of National General Holdings Corp. and Its Subsidiaries Under Review With Positive Implications
July 09 2020 - 6:20PM
Business Wire
AM Best has placed under review with positive
implications the Long-Term Issuer Credit Rating (Long-Term ICR) of
“bbb-” of National General Holdings Corp. (NGHC) (headquartered in
New York, NY) [NASDAQ:NGHC], and all of the Long-Term Issue Credit
Ratings (Long-Term IRs) and indicative Long-Term IRs of NGHC
securities. At the same time, AM Best has placed under review with
positive implications the Financial Strength Rating (FSR) of A-
(Excellent) and the Long-Term ICRs of “a-” of Integon National
Insurance Company (Winston-Salem, NC) and its reinsured affiliates,
as well as of National General Re Ltd. (Hamilton, Bermuda). All of
the operating insurance entities are collectively referred to as
National General Group or the Group.
The Credit Rating (rating) actions follow the recent
announcement by The Allstate Corporation (AllCorp) of its agreement
to acquire NGHC in an all-cash transaction expected to close in
early 2021, subject to regulatory approvals. The positive
implications reflect the financial strength of the acquirer,
AllCorp, and the expected implicit and explicit support the NGHC
operating companies will receive from AllCorp. The rating will
remain under review pending closing of the transaction and
completion of discussions with the new parent. See below for a
detailed listing of the companies and ratings.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” have
been placed under review with positive implications for the
following insurance subsidiaries of National General Holdings
Corp.:
- New South Insurance Company
- National General Assurance Company
- National Farmers Union Property and Casualty Company
- Integon National Insurance Company
- Integon Indemnity Corporation
- Integon General Insurance Corporation
- MIC General Insurance Corporation
- National General Insurance Company
- Standard Property and Casualty Insurance Company
- National Health Insurance Company
- Integon Casualty Insurance Company
- Imperial Fire and Casualty Insurance Company
- Integon Preferred Insurance Company
- National General Insurance Online, Inc.
- National General Premier Insurance Company
- National General Re Ltd.
- Century-National Insurance Company
- Agent Alliance Insurance Company
- Direct Insurance Company
- Direct General Insurance Company
- Direct General Insurance Company of Mississippi
- Direct National Insurance Company
- Direct General Life Insurance Company
The following Long-Term IRs have been placed under review with
positive implications:
National General Holdings Corp.— -- “bbb-” on $100 million 6.75%
senior unsecured notes, due 2024 -- “bbb-” on $250 million 6.75%
senior unsecured notes, due 2024 -- “bb+” on $100 million 7.625%
subordinated notes, due 2055 -- “bb” on $200 million 7.5% preferred
stock -- “bb” on $165 million 7.5% preferred stock -- “bb” on $55
million 7.5% preferred stock
The following indicative Long-Term IRs for securities available
under the shelf registration have been placed under review with
positive implications:
National General Holdings Corp.— -- “bbb-” on senior unsecured
debt -- “bb+” on subordinated debt -- “bb” on preferred stock --
“bb” on junior subordinated
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 Guide to 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 credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 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/20200709005986/en/
Ana Daley Financial Analyst +1 908 439 2200,
ext. 5326 ana.daley@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jennifer Marshall Director +1 908 439 2200,
ext. 5327 jennifer.marshall@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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