AM Best leaves Hagerty Re ratings unchanged
AM Best has left the credit ratings of Bermuda-based captive insurance company Hagerty Reinsurance unchanged following the announcement that its parent company plans to buy another insurer to create a new carrier platform.
Hagerty Insurance Holdings , the ultimate parent of Hagerty Re, has entered into a stock purchase agreement with Everspan Insurance Company to acquire all the issued and outstanding capital stock of Consolidated National Insurance Company.
Hagerty Re is a Class 3 insurer which provides motor insurance to car enthusiasts,
Hagerty plans to make Consolidated National Insurance Company to become a new carrier platform and provide a differentiated line of business, allowing it to continue to drive premium growth and retention of underwriting profits.
AM Best said that the acquisition is not expected to have any material impact on Hagerty Re’s balance sheet strength or any near-term material impact on the ultimate parent, Hagerty.
However, the rating agency added that it will continue to monitor the transaction through closing and potentially take rating action should any factor associated with the deal change materially.
