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AM Best comments on Credit Ratings of Accident Fund Insurance Company of America and subsidiaries following announcement of AmeriTrust Group acquisition

OLDWICK, N.J. — (BUSINESS WIRE) — #insuranceAM Best has commented that 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 referred to as 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 has entered into a definitive agreement to acquire AmeriTrust Group from Fosun International Limited. AmeriTrust offers specialty insurance programs and products, including workers’ compensation, commercial package and automotive business coverages, and comprehensive product offerings in various industry segments.

 

AM Best anticipates that Accident Fund will continue to maintain supportive risk-adjusted capitalization and overall balance sheet strength, which is assessed at the very strong level. AM Best does not expect Accident Fund’s strong operating performance, neutral business profile and appropriate enterprise risk management to be impacted by the transaction. Following the close of the transaction, AM Best will continue to discuss the transaction’s progress with Accident Fund management and assess its impact on operations.

 

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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Michael Venezia
Senior Financial Analyst
+1 908 439 2200, ext. 5034
michael.venezia@ambest.com

Robert Raber
Director
+1 908 439 2200, ext. 5696
robert.raber@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

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