CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 05, 2018 04:04 PM (EST)
A.M. Best has commented that the Credit Ratings (ratings) of the insurance subsidiaries of American Enterprise Group, Inc. (American Enterprise), which include: American Republic Insurance Company, American Republic Corp Insurance Company, Medico Corp Life Insurance Company, Medico Insurance Company and Medico Life and Health Insurance Company (all of which are domiciled in Des Moines, IA) remain unchanged following the announcement that American Enterprise has entered into a stock purchase agreement to acquire Great Western Insurance Company (Great Western) (Ogden, UT).
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.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.