Press Release - JANUARY 05, 2018
A.M. Best Comments on Credit Ratings of American Enterprise Group's Insurance Subsidiaries Following Acquisition Announcement
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 05, 2018
The acquisition is expected to close in the first quarter of 2018, pending regulatory approval and will be financed by American Enterprise through a combination of available cash and Federal Home Loan Bank borrowings. The addition of Great Western will primarily expand American Enterprise’s product offerings to include preneed life insurance along with an extensive funeral home distribution network, while remaining focused on its core senior market. Great Western also offers a group annuity funding product for funding of health savings accounts for high deductible health plans. Furthermore, the acquisition will increase American Enterprise’s block of final expense business.
American Enterprise has a strong balance sheet and favorable risk-adjusted capital metrics, which are more than adequate to support the additional business and investment risk being added through the acquisition of the Great Western organization. American Enterprise has reported favorable operating trends, with premium growth and continued profitability driven mostly by its core Medicare Supplemental business. The acquisition of Great Western is anticipated to grow premiums and net income for the organization.
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