A.M. Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of National Farmers Union Property and Casualty Co. (NFU P&C) in Sun Prairie, Wisconsin.
These ratings were reviewed with negative impacts after QBE Insurance Group Limited (QBE) signed a sales contract with NFU P & C’s National General Holdings Corp. (NGHC) in New York, New York. .
The transaction is expected to close in the first half of 2019.
NFU P & C consists of a personal insurance and a farmer’s business as well as a telecommunications insurance program. The deal allows QBE’s North American unit to focus on private, core commercial, program, product and reinsurance businesses, along with QBE’s operations at Westwood Insurance Agency Inc., a California-based personal lines agency. Purchasing offers NGHC the opportunity to further expand its position on personal lines and expand its distribution network.
The ratings will continue to be reviewed while waiting for the transaction to complete. Upon the inclusion of the NFU P & C in the National General Group, the rating may be graded as the group members already hold the A- (Excellent) FSR.
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