OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with positive implications the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Starmount Life Insurance Company (Starmount) (Baton Rouge, LA).
The under review status reflects the recent announcement of a definitive agreement entered into between Unum Group (Unum) and H & J Capital, LLC, the holding company of Starmount, under which Unum will acquire the company and its other operations. The company is a regional, ancillary benefits carrier specializing in the group and individual dental and vision markets. Starmount is licensed to sell business in 49 states and the District of Columbia, with a material amount of business written in the southeastern United States. However, Starmount has worked to diversify its operations, notably expanding its geographic reach in recent years.
For Starmount, the acquisition further strengthens the company’s ability to compete competitively in workplace dental and vision markets and provides the benefit of a strong parent company with significant financial flexibility and resources to further enhance Starmount’s historically favorable financial metrics. A.M. Best notes that Starmount has profitably grown its core dental and vision business, while continuing to strengthen its capital position over the past decade. Additionally, the under review status reflects the potential operational and financial benefits that Starmount will likely receive as a result of its integration with Unum Group. The transaction is expected to close by the end of the third quarter of 2016, subject to customary closing conditions and regulatory approval.
The ratings will remain under review pending the close of the transaction and A.M. Best’s completion of its review of the transaction details.
This press release relates to rating(s) 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 Recent Rating Activity web page.
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