February 13, 2024 - AM Best, a globally recognized credit rating agency, has reaffirmed the credit ratings of Hagerty Reinsurance Limited (Hagerty Re), following the announcement of its parent company's acquisition plan. The decision underscores AM Best's confidence in Hagerty Re's financial stability and its ability to meet its obligations, despite the upcoming changes in its corporate structure.
Acquisition Announcement: A New Platform for Growth
Hagerty Insurance Holdings, parent company of Hagerty Re, has recently inked an agreement to acquire Consolidated National Insurance Company (CNIC) from Everspan Insurance Company. This acquisition is poised to provide a new platform for growth and underwriting profit retention, reinforcing Hagerty Re's position in the industry.
Balance Sheet Strength: Minimal Impact Anticipated
AM Best anticipates that the acquisition will not have a material impact on Hagerty Re's balance sheet strength or on Hagerty, Inc., the ultimate parent company. The credit rating agency's decision to maintain Hagerty Re's credit ratings reflects its assessment of the company's robust financial profile, which is expected to remain resilient throughout the acquisition process.
AM Best's Continued Monitoring and Possible Rating Action
AM Best will closely monitor the transaction and may take rating action if necessary. The agency's commitment to evaluating the financial health of insurance companies ensures that stakeholders can rely on accurate and up-to-date information regarding Hagerty Re's creditworthiness.
In conclusion, Hagerty Reinsurance Limited's credit ratings remain unaffected by the acquisition announcement, demonstrating AM Best's confidence in the company's financial stability and ability to meet its obligations. As the transaction unfolds, AM Best will continue to scrutinize the situation, providing stakeholders with the essential insights they need to make informed decisions.Keywords: