A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to Agent Alliance Insurance Company (AAIC) (Mobile, AL). The outlook assigned to both ratings is stable. AAIC is a direct subsidiary of Integon National Insurance Company (Integon National), which is a subsidiary of National General Holdings Corp. (National General) [NASDAQ:NGHC].
The ratings reflect AAIC’s strong level of risk-adjusted capitalization and the role the company will play in the execution of the lender-placed business that was acquired by National General from QBE North America in 2015. The ratings also reflect the explicit support provided by Integon National in the form of a $32 million capital contribution in the fourth quarter of 2015, which provides the capital to support the business that will be written by AAIC beginning in 2016.
Partially offsetting these positive factors are AAIC’s concentration of risk, with AAIC expected to write property business in the state of Florida; the regulatory scrutiny of lender-placed insurance business; and the execution risk associated with the business plan, including substantial expense reductions under the management of National General.
Failure of the company to perform in line with its business plan could result in negative rating actions. In addition, as the ratings reflect the explicit support of Integon National, any positive or negative change in that company’s rating, or in the strategic importance of AAIC to Integon National, could result in a similar change in the rating of AAIC.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
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