Liberty Mutual promoting employees’ Comp Unit Summit Southeast to American monetary

Liberty Mutual coverage said it has agreed to promote Summit Holdings Southeast Inc. and its associated companies to American monetary organization (AFG) in an all-cash transaction worth $250 million.

based in Lakeland, Florida, Summit sells people’ reimbursement within the Southeast and has approximately $520 million of premium written.

Following the transaction, Summit will preserve to function underneath the Summit logo as a member of AFG’s extremely good American coverage group, in keeping with the assertion.

underneath the terms of the transaction, Cincinnati-primarily based AFG pays Liberty Mutual an predicted $250 million at closing. the purchase fee could be problem to adjustment between signing and remaining for, amongst different things, changes in Summit’s GAAP tangible e-book cost.

Summit’s associates encompass:

•Bridgefield Casualty insurance Co.: Does business in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.

•Bridgefield Employers insurance Co.: Sells in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.

Following the announcement, rating business enterprise A.M. first-rate issued a remark saying that AFG’s total capital funding in Summit could be approximately $400 million, which includes the capital contribution at remaining.

A.M. satisfactory Co. said the provider credit score (ICR) of “bbb+” and all debt ratings of AFG are unchanged. similarly, A.M. great stated the monetary energy score of A (first rate) and ICRs of “a” of Summit’s insurance subsidiaries Bridgefield Employers coverage and Bridgefield Casualty coverage Co. — are also unchanged.

The score organization stated the transaction has no effect on AFG’s monetary leverage measures as no external financing is utilized. AFG’s general debt-to-total capital and interest insurance ratios continue to be within A.M. first-class’s recommendations for its current scores. AFG has no cloth debt maturing till 2019, similarly benefiting its liquidity role, in keeping with A.M. first-class. 

through its exceptional American coverage organization, AFG sells specialised business assets/casualty insurance merchandise as well as annuities. Its predominant product lines encompass inland and ocean marine, people’ compensation, agricultural-related merchandise which include crop coverage, govt and expert liability, constancy and surety, collateral safety, umbrella and excess liability, excess and surplus and commercial vehicle. The group writes enterprise in all 50 states on the whole thru unbiased marketers and brokers.