Business Wire - Americo Life Group, Ohio State Life and Investors Guaranty Life ratings placed under review, A.M. Best says
OLDWICK, N.J.–(BUSINESS WIRE)–Jan. 24, 1997–Effectively immediately, A.M. Best Co. has placed its ratings on the Americo Life Group–including the “A” (Excellent) ratings of Great Southern Life Insurance Co. and College Life Insurance of America; the “B” (Very Good) ratings of Loyalty Life Insurance Co. and National Farmers Union Life Insurance Co.; and the “5″ (Average) Financial Performance Ratings of United Fidelity Life Insurance Co. and Financial Assurance Inc., all of Kansas City, Mo.–under review with developing implications.
In addition, the “A-” (Excellent) rating of Ohio State Life Insurance Co. and the “B” (Very Good) rating of Investors Guaranty Life Insurance Co., both of Columbus, Ohio and members of the Farmers Insurance Group, have been placed under review with developing implications. The “A” (Superior) Best rating of Farmers New World Life Insurance Co., another wholly owned subsidiary of Farmers Group, is unaffected by this transaction.
The rating action follows the announcement by Americo Life, Inc., that it had entered into an agreement with Farmers Group Inc., to acquire the stock of Ohio State Life and Investors Guaranty Life Insurance, two of its wholly owned subsidiaries.
The aggregate purchase price for the transaction will be approximately $330.0 million in cash. The transaction will be financed through the use of internal funds and the remainder provided by proceeds from a reinsurance arrangement with an unaffiliated reinsurer.
The life insurance subsidiaries of Americo Life offer a portfolio of individual interest sensitive life insurance products, including interest-sensitive whole life and universal life; single-premium and flexible-premium annuity products and traditional life insurance products, including term and whole life insurance. The subsidiaries of Farmers Insurance Group also focus their marketing activities on the sale of a general portfolio of life insurance coverage, including individual universal life, term and individual single- and flexible-premium deferred-annuity products.
The scope of A.M. Best’s review will include an evaluation of the financial terms and structure of the transaction, as well as the longer-term strategic implications for the insurance operations of the companies. The ratings will remain under review pending further discussions with management and until the transaction is complete. of $29.7 million.
A.M. Best Co., established in 1899, is America’s oldest and most widely recognized insurance rating and information source.
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