OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Individual Assurance Company, Life, Health & Accident (IAC) (Edmond, OK).
These Credit Rating (rating) actions reflect IAC entering into a definitive agreement with LifeShield National Insurance Co. (LifeShield National), under which LifeShield National will acquire IAC as a wholly owned subsidiary. The transaction is expected to close in the second or third quarter of 2019, subject to regulatory approval.
Oklahoma City-based LifeShield National is a life and accident and health insurance carrier operating primarily in the worksite accident and health market, but is growing its individual life business. The company assumes and cedes business from other carriers in conjunction with various insurance programs. IAC is also a life and accident and health insurer, marketing chiefly Medicare supplement and group term life products, with an established market niche within governments and small employers in the Pacific region. LifeShield National anticipates gaining access to IAC’s administrative services only (ASO) capabilities, while IAC looks forward to gaining access to continued strong capital support, additional distribution channels and greater information technology capabilities.
The ratings will remain under review pending further discussions with IAC’s management in the coming months, as AM Best reviews the nature of the transaction to determine its potential impact on the company.
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