AM Best Places Credit Ratings of National Lloyds Insurance Company and American Summit Insurance Company Under Review With Developing Implications
OLDWICK, N.J.--(BUSINESS WIRE)--Feb 3, 2020--
AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of National Lloyds Insurance Company (National Lloyds). Concurrently, AM Best has placed under review with developing implications the FSR of A (Excellent) and the Long-Term ICR of “a” of American Summit Insurance Company (American Summit), a National Lloyds affiliate. National Lloyds and American Summit are domiciled in Dallas, TX, and are subsidiaries of Hilltop Holdings Inc. (HTH) [NYSE:HTH], a financial holding company based in Texas.
The Credit Rating (rating) actions follow HTH’s announcement of a definitive agreement with Align Financial Holdings, LLC (Align) for the sale of HTH’s wholly owned subsidiary, National Lloyds Corporation, an intermediate insurance holding company that owns National Lloyds and American Summit. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in second-quarter 2020.
The ratings will remain under review pending the completion of the transaction and AM Best’s discussion with new ownership. The developing implications are due primarily to the uncertainty and execution risk regarding the transaction and the impact on business profile. Throughout the under-review period, AM Best will monitor the entities’ risk-adjusted capitalization, 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’sRecent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please viewGuide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please viewGuide 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, visitwww.ambest.com.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: OTHER PROFESSIONAL SERVICES PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: AM Best
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PUB: 02/03/2020 04:16 PM/DISC: 02/03/2020 04:16 PM