Insurance company

AM Best comments on the credit ratings of Accident Fund Insurance Company of America and its subsidiaries following the announcement of the acquisition of AmeriTrust Group

OLDWICK, NJ–(BUSINESS WIRE)–AM Best said the credit ratings (ratings) of Accident Fund Insurance Company of America (Accident Fund) (Lansing, MI) and its insurance subsidiaries remain unchanged following the announcement that it has agreed to acquire Star Insurance Company (Southfield, MI) and its subsidiaries (collectively, AmeriTrust Group). The transaction is subject to regulatory approvals and is expected to close before the end of 2022.

On April 12, 2022, Accident Fund announced that it had entered into a definitive agreement to acquire AmeriTrust Group from Fosun International Limited. AmeriTrust offers specialized insurance programs and products, including workers’ compensation insurance, commercial packages and coverage for automotive companies, as well as comprehensive product offerings in various industry segments.

AM Best expects Accident Fund to continue to maintain favorable risk-adjusted capitalization and overall balance sheet strength, which is rated very high. AM Best does not expect Accident Fund’s strong operating performance, neutral business profile and appropriate business risk management to be affected by the transaction. Following the closing of the transaction, AM Best will continue to discuss the progress of the transaction with Accident Fund management and assess its impact on operations.

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