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FOR IMMEDIATE RELEASE
OLDWICK - MAY 25, 2016 09:39 AM (EDT)
A.M. Best has placed under review with positive implications the financial strength rating of B++ (Good) and the issuer credit rating of “bbb” of Nevada General Insurance Company (Nevada General) (Las Vegas, NV), following the recent announcement by Western National Mutual Insurance Company (Western National) that it has executed a definitive agreement to purchase Nevada General.
The transaction is expected to provide both companies with increased diversification through additional spread of risk, while providing Nevada General access to Western National’s independent agency base. The agreement has been approved by each company’s board of directors and is subject to due diligence and the approval of regulatory authorities, which is expected no later than July 2016, pending customary closing conditions and approval by regulatory authorities in Minnesota and Nevada.
It is A.M. Best’s expectation that Nevada General will continue to operate as a separate entity writing non-standard automobile business primarily in Nevada and New Mexico following the approval, under the ultimate management and control of Western National, which will provide operational and financial guidance. As a result of the transaction, Nevada General will be joining a larger, more diversified insurance group, which should result in improved economies of scale for the company.
Nevada General’s ratings will remain under review until the close of the transaction and the conclusion of A.M. Best’s assessment of its impact on the ratings.
This press release relates to rating(s) 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.
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