AM Best Places Credit Ratings of Service Insurance Group Members Under Review With Positive Implications Following Acquisition Announcement

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Service Lloyds Insurance Company, a Stock Company and Service American Indemnity Company, which operate under a pooling agreement. Both companies are headquartered in Austin, TX. and are collectively referred to as Service Insurance Group (Service or the group).

The Credit Ratings (ratings) have been placed under review with positive implications following the announcement that Sompo Holdings, Inc., via a wholly owned subsidiary, has entered into a stock purchase agreement in which it will acquire all outstanding shares of Service’s members. The under review with positive implications status reflects the potential financial and operational benefits that the group may derive from being part of a significantly larger insurance organization, which is of greater financial strength.

The transaction is subject to customary conditions, including the receipt of required regulatory approvals. The ratings will remain under review pending completion of the transaction and AM Best’s evaluation of parental support, integration plans and the expected impact on Service’s future business plans.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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