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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 16, 2018 04:25 PM (EDT)
A.M. Best has removed from under review with negative implications and downgraded the Financial Strength Rating to B (Fair) from B++ (Good) and the Long-Term Issuer Credit Rating to “bb+” from “bbb+” of Kanawha Insurance Company (Kanawha) (Lancaster, SC). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has withdrawn the ratings as the new parent company, HC2 Holdings, Inc. (HC2), has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect Kanawha’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its weak operating performance, limited business profile and appropriate enterprise risk management.
The ratings had previously received lift from its prior ultimate parent organization, Humana Inc., based on Humana’s financial strength, as well as its historical implicit and explicit support of Kanahwa. The downgrades reflect the withdrawal of this ratings enhancement, following the announcement on Aug. 9, 2018, of the completion of the sale of Kanawha to Continental General Insurance Company, a Texas-based insurance company wholly owned by HC2.
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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