OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with positive implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Amalgamated Casualty Insurance Company (ACIC) (headquartered in Chevy Chase, MD).
The under review status of these Credit Ratings (ratings) reflects the planned demutualization of ACIC that is anticipated to become effective in March 2022. Upon completion, ACIC will convert to a stock company ultimately owned by its subscribing policyholders, employees, officers, directors and other investors.
Concurrently, ACIC will be rebranding as ‘Forge Insurance Company’, as new senior leadership implements the company’s plan to focus future business growth on lower frequency/severity classes and jurisdictions within the commercial auto segment, which management believes should reduce ACIC’s risk profile prospectively. The positive implications status takes into consideration all of the aforementioned factors and significant steps new leadership has taken thus far to strengthen the company’s enterprise risk management framework and capabilities in advance of the transaction, in order to execute on its new business plan going forward.
The ratings are expected to remain under review until the transaction closes and AM Best has assessed its impact on the company’s credit fundamentals.
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.
