Best’s News & Research Service - October 30, 2014 01:47 PM (EDT)
A.M. Best Comments on Ratings of Philadelphia Financial Group, Inc. and Its Subsidiaries Following Acquisition Announcement
- October 30, 2014 01:47 PM (EDT)
Oldwick //BestWire// - A.M. Best has commented that the issuer credit rating (ICR) of "bbb-" of Philadelphia Financial Group, Inc. (PFG), as well as the financial strength rating of A- (Excellent) and the ICRs of "a-" of the two domestic life/health insurance subsidiaries of PFG: Philadelphia Financial Life Assurance Company and Philadelphia Financial Life Assurance Company of New York, are unchanged following the announcement that Tiptree Financial Inc. [NASDAQ:TIPT] has entered into a definitive agreement to sell the companies to funds managed by the Tactical Opportunities Group of The Blackstone Group L.P. (Blackstone) [NYCE:BX].
Blackstone has agreed to pay approximately $155 million in cash plus additional consideration of approximately $10 million to be paid over two years in order to acquire PFG and its subsidiaries. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the third quarter of 2015. The current ratings of PFG and its subsidiaries will be re-evaluated should the transaction fail to close as anticipated.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Evaluating Non-Insurance Ultimate Parents
- Insurance Holding Company and Debt Ratings
- Rating Members of Insurance Groups
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