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 American Surety Company (ASC) (Indianapolis, IN).
The under review status follows the recent announcement that Core Specialty Insurance Holdings, Inc. and its subsidiaries (Core Specialty), Eighth Amendment Holdings, Inc. (the parent of ASC), Underwriters Surety, Inc. and ASC have signed a purchase agreement whereby Core Specialty will acquire American Surety in a stock and cash transaction. As part of the transaction, Core Specialty will provide a capital investment to Underwriters Surety, Inc. prior to closing, which will be used to increase the capital base of ASC and for general corporate purposes. The transaction will create a new Specialty Business Unit for Core Specialty and ASC will operate as a separately managed division, retaining its brand identity.
The ratings will remain under review until the close of the transaction, including customary regulatory approvals and AM Best evaluates post-transaction details. The transaction is expected to be completed during first-quarter 2024.
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