Best’s News & Research Service - October 27, 2016 03:46 PM (EDT)
A.M. Best Places Credit Ratings of Granite Re, Inc. Under Review With Positive Implications
- October 27, 2016 03:46 PM (EDT)
Oldwick //BestWire// - A.M. Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Granite Re, Inc. (Granite) (Oklahoma City, OK).
This action follows the recent announcement that Federated Mutual Insurance Company (Federated) has entered into a definitive agreement to acquire Granite. The acquisition of Granite is intended to better position Federated to partner with commercial contractors on surety and bonding needs. The companies are still in discussion regarding operational changes that may be forthcoming. However, the transaction is expected to close in January 2017 pending regulatory approval.
The under review with positive implications status reflects the potential capital support and operating synergies provided to Granite by Federated. Granite will benefit from Federated’s much larger capital base, complementary business profile and quality enterprise risk management program. The ratings will remain under review pending the completion of the transaction and A.M. Best’s review of Federated’s future operating plans for Granite.
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.
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