AM Best Places Credit Ratings of Trusted Resource Underwriters Exchange Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Trusted Resource Underwriters Exchange (TRUE) (West Palm Beach, FL).

This follows the Jan. 2, 2024, announcement that American Family Insurance Group and Gallatin Point Capital (Gallatin Point) closed on a transaction under which Gallatin Point will acquire a majority stake in the attorney-in-fact for TRUE. The transaction closed Dec. 31, 2023. Per the announcement, Gallatin Point is investing $1.25 billion of capital into TRUE and plans to expand its footprint nationally.

The under review with negative implications status reflects the significant changes in ownership and overall business strategy and the impact these may have on the Credit Ratings (ratings). At this time, it is also unclear what the impact of the capital commitment and growth will have on TRUE’s balance sheet strength assessment.

The ratings will remain under review in the short term until AM Best obtains additional clarity surrounding TRUE’s business plan.

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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