AM Best Places Credit Ratings of Direct General Life Insurance Company Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Direct General Life Insurance Company (Direct General) (Orangeburg, SC).

This follows the Jan. 30, 2025 announcement that The Allstate Corporation (Allstate) [NYSE: ALL] entered into a definitive agreement to sell Direct General for $1.25 billion to a subsidiary of Nationwide Mutual Insurance Company (Nationwide). Prior to close of the sale, all of the group health stop-loss business within Allstate, which amounts to approximately $800 million of revenues on an annual basis, will be transferred to Direct General; any non-group health business will be transferred to other entities within Allstate. The Credit Ratings of Direct General will remain under review until the transaction closes and AM Best has a discussion with Nationwide on its level of support for Direct General.

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