OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has placed under review with developing implications the
Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit
Rating of “bbb-” of Merit Life Insurance Co. (Merit) (Fort Worth, TX).
The Credit Ratings of Merit, which were last updated in December 2018,
were placed under review with developing implications due to the recent
public disclosure by its parent, OneMain Holdings, Inc. (OneMain), of
its intent to divest the entity. OneMain indicated in its most recent
public filing that it had entered into a share purchase agreement with a
third-party insurance holding company to sell all of the issued and
outstanding shares of Merit. The transaction is expected to close early
in the third quarter of 2019. The ratings will remain under review
pending upcoming discussions with the acquirer’s management, including
analysis of proforma projections of capital and earnings, for assessment
of the potential impact on the company’s current ratings.
This press release relates to Credit Ratings that have been published
on AM 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 AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Kate Steffanelli
Senior Financial Analyst
+1
908 439 2200, ext. 5063
[email protected]
Michael
Adams
Senior Financial Analyst
+1 908 439 2200,
ext. 5133
[email protected]
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
[email protected]
Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
[email protected]
