OLDWICK, NJ–(BUSINESS WIRE)–AM Best placed under review with negative implications the financial strength rating (FSR) of A+ (Superior) and the issuer’s long-term credit rating (Long-term ICR) of “aa-” (Superior) of Arizona Automobile Insurance Company (AAIC) (Phoenix, AZ).
These credit ratings (ratings) have been subject to review following a definitive agreement signed pursuant to which Trexis Insurance Corporation (Trexis) will acquire AAIC from its parent company, Western National Mutual Insurance Company. Trexis is a member of Alfa Insurance Group, which has an FSR of A (Excellent) and a long-term ICR of “a” (Excellent).
AAIC currently participates in an intercompany pooling arrangement with its parent company and its subsidiaries. The status of negative implications reflects the rating differential between current ownership and potential ownership. Although the exact timing of the sale is dependent on regulatory approval, management believes the most likely closing date will be March 1, 2022. Ratings will remain under review until the transaction closes and AM Best will complete its analysis of the role of AAIC in the new group.
The existing FSR of A+ (Superior) and long-term ICRs of “aa-” (Superior), each with a stable outlook, for the following members of the Western National Insurance Pool remain unchanged:
West National Mutual Insurance Company
Western National Insurance Company
Pioneering specialist insurance company
Umialik Insurance Company
American Liberty Insurance Company
Nevada General 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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Rating Activity webpage. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Preliminary Credit Scores, and AM Best’s press releases, please see Guide to the Proper Use of Best Scores and Ratings.
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