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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 23, 2020 04:48 PM (EDT)
AM Best has downgraded the Financial Strength Rating to B+ (Good) from B++ (Good) and the Long-Term Issuer Credit Rating to “bbb-” from “bbb” of American Sentinel Insurance Company (American Sentinel) (Harrisburg, PA). These Credit Ratings (ratings) remain under review with developing implications.
The ratings reflect American Sentinel’s balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The downgrade of the ratings and the maintaining of the under review status for the ratings of American Sentinel reflect a decline in balance sheet strength and a change in strategy at the ultimate parent, LD Investments LLC. AM Best previously placed American Sentinel under review as management was considering an intercompany pooling agreement with an affiliate company, Seaview Insurance Company, as a form of capital support. However, due to the shift in strategy, American Sentinel has entered into a stock purchase agreement for the sale of the company to Pie Carrier Holdings. Subject to regulatory approval, LD Investments LLC expects to complete the sale prior to the end of 2020. The ratings will remain under review until the deal has been finalized and AM Best analyzes the future business plan of American Sentinel.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.