OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with positive implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of SureTec Insurance Company (SIC). Concurrently, A.M. Best has also placed under review with positive implications the FSR of A- (Excellent) and the Long-Term ICR of “a-” of SureTec Indemnity Company (SINC), a subsidiary of SIC. SIC and SINC are wholly owned operating subsidiaries of SureTec Financial Corp. (SFC). All companies are headquartered in Houston, TX.
The rating actions follow the announcement that Markel Corporation [NYSE: MKL] has entered into a definitive agreement to acquire SFC. The transaction is expected to close in the first half of 2017, subject to customary closing conditions, including regulatory approvals.
The under review with positive implications status of SIC and SINC reflects the potential financial and operational benefits that the companies may derive from being part of a larger and more diverse organization. It also reflects the positive outlook in place on the Long-Term ICR of SIC at the announcement of the transaction. The members of Markel North America Insurance Group maintain an FSR of A (Excellent) and the Long-Term ICRs of “a+”. The outlook of these ratings is stable.
The ratings will remain under review until the close of the transaction and a review by A.M. Best of the post-transaction details.
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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