OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best has placed under review with positive implications theFinancial Strength Rating (FSR) of A (Excellent) and the Long-TermIssuer Credit Rating (Long-Term ICR) of “a” of SureTec InsuranceCompany (SIC). Concurrently, A.M. Best has also placed under reviewwith positive implications the FSR of A- (Excellent) and the Long-TermICR of “a-” of SureTec Indemnity Company (SINC), a subsidiary ofSIC. SIC and SINC are wholly owned operating subsidiaries of SureTecFinancial Corp. (SFC). All companies are headquartered in Houston,TX.
The rating actions follow the announcement that Markel Corporation[NYSE: MKL] has entered into a definitive agreement to acquire SFC. Thetransaction is expected to close in the first half of 2017, subject tocustomary closing conditions, including regulatory approvals.
The under review with positive implications status of SIC and SINCreflects the potential financial and operational benefits that thecompanies may derive from being part of a larger and more diverseorganization. It also reflects the positive outlook in place on theLong-Term ICR of SIC at the announcement of the transaction. The membersof Markel North America Insurance Group maintain an FSR of A(Excellent) and the Long-Term ICRs of “a+”. The outlook of these ratingsis stable.
The ratings will remain under review until the close of the transactionand a review by A.M. Best of the post-transaction details.
This press release relates to Credit Ratings that have been publishedon A.M. Best’s website. For all rating information relating to therelease and pertinent disclosures, including details of the officeresponsible for issuing each of the individual ratings referenced inthis release, please see A.M. Best’s RecentRating Activity web page. For additional informationregarding the use and limitations of Credit Rating opinions, please view UnderstandingBest’s Credit Ratings.
A.M. Best is the world’s oldest and most authoritative insurancerating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or itssubsidiaries. ALL RIGHTS RESERVED.