OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has commented that the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” for the members of Intact Financial Corporation (Intact) (Toronto, Ontario, Canada) [TSX:IFC] remain unchanged following the announcement that Intact will acquire The Guarantee Company of North America and its subsidiary, The Guarantee Company of North America USA. These companies collectively are known as the Guarantee Companies, and are property/casualty writers in the United States and Canada.
Intact’s anticipated post-transaction risk-adjusted capitalization and leverage measures are expected to remain in line with AM Best’s current assessment of its balance sheet strength. AM Best also believes that the addition of the Guarantee Companies will contribute further to the growing geographic, product line and distribution diversification of Intact.
While there is execution risk associated with a transaction of this size and scope, this risk is somewhat mitigated by Intact’s historical track record of successful acquisition and integration with other similar entities.
AM Best expects the transaction to be completed in the fourth quarter of 2019, pending regulatory approval in the United States and Canada. Intact’s ratings will be continue to be monitored on an ongoing basis until the transaction concludes, at which time AM Best will conduct discussions with management regarding the final terms of the transaction and its impact on balance sheet strength, operating performance, business profile and enterprise risk management.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Senior Financial Analyst
+1 908 439 2200, ext. 5304
Raymond Thomson, CPCU, ARe, ARM
+1 908 439 2200, ext. 5621
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644