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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