AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of American National Insurance Company (ANICO) and its life/health subsidiaries, American National Life Insurance Company of Texas, American National Life Insurance Company of New York (Glenmont, NY) and Standard Life and Accident Insurance Company. These companies are referred to collectively as the American National Group. Concurrently, AM Best has placed under review with developing implications the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) for Garden State Life Insurance Company.
In addition, AM Best has placed under review with developing implications the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of American National Property and Casualty Company (Springfield, MO), and its subsidiaries, American National General Insurance Company (Springfield, MO); ANPAC Louisiana Insurance Company (Baton Rouge, LA); American National Lloyds Insurance Company; Pacific Property and Casualty Company (San Jose, CA); and its affiliates, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company (both domiciled in Glenmont, NY). These entities are all considered part of American National Property & Casualty Group due to their strategic importance. These companies are property/casualty subsidiaries of ANICO, which is a subsidiary of American National Group, Inc. (American National) [NASDAQ: ANAT]. All the above companies are headquartered in Galveston, TX, unless otherwise noted.
The Credit Rating (rating) actions follow the announcement that American National has entered into a definitive merger agreement for its sale to Brookfield Asset Management Reinsurance Partners Ltd. (Brookfield Reinsurance) in an all-cash transaction of approximately $5.1 billion. The sale has been approved by American National’s board of directors and the transaction, which is subject to customary closing conditions, including shareholder and regulatory approvals, is expected to be completed by the first half of 2022. The merger will be funded by Brookfield Reinsurance through a combination of debt and equity financing, including committed debt financing of $1.5 billion and an equity commitment of up to the aggregate transaction amount from Brookfield Asset Management Inc.
The under review with developing implications status reflects the need for AM Best to assess fully the financial and operational impacts of the acquisition on American National’s rating fundamentals, including on its balance sheet strength and business profile. The ratings will remain under review pending completion of the acquisition, and until AM Best can complete its assessment of American National’s post-acquisition rating fundamentals.
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