Best’s News & Research Service - April 04, 2018 11:51 AM (EDT)
A.M. Best Comments on Credit Ratings of IFIC Group Members Following Announced Sale
- April 04, 2018 11:51 AM (EDT)
Oldwick //BestWire// - A.M. Best commented that the Credit Ratings (ratings) of International Fidelity Insurance Company (Newark, NJ), and its subsidiary, Allegheny Casualty Company (collectively referred to as IFIC Group) remain unchanged following the recently announced sale of the parent holding company, IFIC Surety Group, Inc. (IFIC).
On April 3, 2018, IFIC entered into a definitive agreement to be acquired by IAT Reinsurance Company Ltd. (IAT Re) (Cayman Islands) for an undisclosed amount. The transaction is pending approval by IFIC’s shareholders and is subject to customary regulatory approvals. A.M. Best expects the transaction to close in third-quarter 2018.
The pending transaction is expected to be bolt-on, which will essentially allow IFIC to maintain its operating autonomy and key personnel while retaining its brand and distribution network in the surety marketplace. Being purchased by IAT Re, the planned acquisition provides IFIC with additional capital resources and enhanced financial flexibility. In return, IAT Re gains an additional product offering and is afforded a well-established surety platform in the United States.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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