A.M. Best Comments on Credit Ratings of Employers Mutual Casualty Company and Its Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 26, 2018--A.M. Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” of Employers Mutual Casualty Company (EMCC) (Des Moines, IA) and its five property/casualty (P/C) subsidiaries (collectively referred to as EMC Insurance Companies) remain unchanged following the announcement that EMCC has submitted a proposal to acquire all outstanding shares of EMC Insurance Group Inc. (EMCI). In addition, the FSR of A (Excellent) and the Long-Term ICR of “a” of EMCC’s separately rated, indirectly owned subsidiary, EMC Reinsurance Company (Des Moines, IA), also remain unchanged. The outlook of these Credit Ratings (ratings) remains stable.
EMCC owns approximately 55% of EMCI’s common stock, and has submitted a proposal to acquire the outstanding common stock for $30 per share in cash. While the proposal is being considered by a special committee of EMCI’s board of directors, business will continue as usual for EMC Insurance Companies. If the proposed transaction is eventually approved by EMCI’s special committee and shareholders, it should have no impact on the operations of EMC Insurance Companies.
A.M. Best has determined that, although capital at EMC Insurance Companies will decline slightly as a result of the proposed transaction, due to the payment of cash to minority shareholders, the overall group’s balance sheet strength will remain at the strongest level as measured by Best’s Credit Rating Methodology.
The following is a list of EMCC’s P/C subsidiaries:Dakota Fire Insurance Company EMC Property & Casualty Company EMCASCO Insurance Company Illinois EMCASCO Insurance Company Union Insurance Company of Providence
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: 11/26/2018 04:04 PM/DISC: 11/26/2018 04:04 PM