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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Comments on Credit Ratings of Insurors Indemnity Companies Following Acquisition Announcement

June 22, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Jun 22, 2021--

AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Insurors Indemnity Companies (Insurors Indemnity) remain unchanged following the recent announcement of the definitive agreement to purchase Colonial Lloyds. The transaction is expected to close before the end of 2021. Both companies are domiciled in Texas.

On June 14, 2021, Insurors Indemnity announced that it has entered into a definitive agreement to acquire residential property insurer Colonial Lloyds. Colonial Lloyds’ gross premium written is approximately $7.5 million with shareholders’ equity of approximately $8.5 million at the end of 2020. Insurors Indemnity will finance the acquisition with existing cash resources.

AM Best anticipates Insurors Indemnity will continue to maintain supportive risk-adjusted capitalization and overall balance sheet strength, which is assessed as very strong. Insurors Indemnity’s strong operating performance, limited business profile and appropriate enterprise risk management are not expected to be impacted by the transaction. Following the close of the transaction, AM Best will continue to discuss its progress with management and assess its effects on Insurors Indemnity’s operations.

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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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210622006087/en/

CONTACT: Ricardo Longchallon

Senior Financial Analyst

+1 908 439 2200, ext. 5676

ricardo.longchallon@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comSharon Marks

Associate Director

+1 908 439 2200, ext. 5477

sharon.marks@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 06/22/2021 05:14 PM/DISC: 06/22/2021 05:14 PM

http://www.businesswire.com/news/home/20210622006087/en