OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the $20 million 6.26% surplus notes due Dec. 31, 2025, issued by Erie Family Life Insurance Company (EFL) (Erie, PA) on Dec. 30, 2005 to Erie Insurance Exchange. The outlook assigned to the Credit Rating is stable.
The surplus notes offering is a private offering and is not subject to a shelf registration statement filed with the Securities and Exchange Commission. A.M. Best notes EFL’s pro forma financial leverage on a statutory basis is expected to remain below 15% in the near to medium term. Coverage is viewed as strong given the company’s historical profitability trends. A.M. Best believes EFL’s financial leverage and interest coverage will remain well within A.M. Best’s guidelines to support its current ratings.
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