AM Best Places Credit Ratings of Nevada General Insurance Company Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of Nevada General Insurance Company (NGIC) (Henderson, NV).

These Credit Ratings (ratings) were placed under review with negative implications following a signed definitive agreement under which Southlake Specialty Insurance Company (SSIC) will acquire NGIC from its parent company, Western National Mutual Insurance Company. Southlake Financial Holdings, LLC is the ultimate parent of SSIC and SSIC is a member of Southlake Insurance Group, which has an FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent), with stable outlooks.

NGIC is currently a participant in an intercompany pooling agreement with its parent company and affiliates. The negative implications status reflects the rating differential between the current and prospective ownership. While the exact timing of the sale is dependent on regulatory approval, management believes the most likely closing date will be the end of March 2024. The ratings will remain under review until the close of the transaction and AM Best completes its analysis of NGIC’s role in the new group.

The current FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior), each with a stable outlook, for the following members of Western National Insurance Pool remain unchanged:

• Western National Mutual Insurance Company
• Western National Assurance Company
• Pioneer Specialty Insurance Company
• Umialik Insurance Company
• American Freedom Insurance Company

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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