A.M. Best Assigns Debt Rating to National General Holdings Corp.’s Preferred Share Offering

A.M. Best has assigned a debt rating of “bb” to the $150 million 7.5% non-cumulative perpetual preferred stock issued by National General Holdings Corp. (NGHC) (headquartered in New York, NY) [NASDAQ:NGHC]. The outlook assigned to the rating is stable. All remaining ratings of NGHC and its subsidiaries are unchanged. (Please see A.M. Best’s related press release dated May 30, 2014)

The proceeds from the issuance will be used for general corporate purposes, which may include future acquisitions and to support current and future writings. With the issuance of the preferred shares, NGHC’s adjusted debt-to-total capital and adjusted debt-to-tangible capital are approximately 21% and 27%, respectively, and are within A.M. Best’s guidelines for its current rating level. In addition, NGHC’s interest coverage ratio is expected to remain solid for its rating.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Analyzing Insurance Holding Company Liquidity

• Equity Credit for Hybrid Securities

• Insurance Holding Company and Debt Ratings

• Risk Management and the Rating Process for Insurance Companies

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 visit A.M. Best’s Ratings & Criteria Center.

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