AM Best Comments on Credit Ratings of Constellation Insurance Group’s Members

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the members of Constellation Insurance Group (Constellation) (Minneapolis, MN) will remain unchanged following the announcement of the pending acquisition of Michigan Professional Insurance Exchange (MPIE) and all subsidiaries. The outlook of these Credit Ratings (ratings) is stable.

MMIC Insurance, Inc. intends to assume MPIE’s historical loss reserves through a loss portfolio transfer and will enter into a Quota Share and Renewal Rights Agreement with MPIE’s future business. In addition, Constellation will purchase the assets of MPIE and membership interests of its subsidiary companies. This transaction will expand Constellation’s business in the Michigan and Ohio markets. Following the close of the transaction, AM Best will continue to discuss its progress with management and assess its effects on Constellation’s operations. The transaction is expected to close mid-2022.

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.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.