A.M. Best Comments on Credit Ratings of Ozark National Life Insurance Company Following Acquisition Announcement
OLDWICK, N.J.--(BUSINESS WIRE)--Oct 8, 2018--A.M. Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-ˮ of Ozark National Life Insurance Company (Ozark) (Kansas City, MO) is unchanged following the announcement of the sale of the organization to National Western Life Insurance Company (NWLIC). On Oct. 4, 2018, NWLIC entered into a stock purchase agreement to acquire all of the outstanding stock of Ozark and N.I.S. Financial Services, Inc. The transaction is expected to close during the first quarter of 2019. The outlook of these Credit Ratings (ratings) is stable.
The acquisition reflects uncertainty with regard to the final capital structure of Ozark on a post-close consideration. As part of the sale, Ozark will be maintained as a direct subsidiary of NWLIC and continue to operate as a separate legal entity. A significant portion of capital likely will be paid to the existing owners in the form of an extraordinary dividend before the close of the transaction, which may not be replaced as part of the purchase agreement with NWLIC. A.M. Best’s expectation that the decline in Ozark’s risk-based capital profile will not change the view of the company’s balance sheet strength after the transaction closes.
A.M. Best will monitor any interim developments and take any necessary rating action as new information develops.
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 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
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SOURCE: A.M. Best
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PUB: 10/08/2018 04:59 PM/DISC: 10/08/2018 04:59 PM