OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Insurors Indemnity Companies (Insurors Indemnity) remain unchanged following the recent announcement of the definitive agreement to purchase Colonial Lloyds. The transaction is expected to close before the end of 2021. Both companies are domiciled in Texas.
On June 14, 2021, Insurors Indemnity announced that it has entered into a definitive agreement to acquire residential property insurer Colonial Lloyds. Colonial Lloyds’ gross premium written is approximately $7.5 million with shareholders’ equity of approximately $8.5 million at the end of 2020. Insurors Indemnity will finance the acquisition with existing cash resources.
AM Best anticipates Insurors Indemnity will continue to maintain supportive risk-adjusted capitalization and overall balance sheet strength, which is assessed as very strong. Insurors Indemnity’s strong operating performance, limited business profile and appropriate enterprise risk management are not expected to be impacted by the transaction. Following the close of the transaction, AM Best will continue to discuss its progress with management and assess its effects on Insurors Indemnity’s operations.
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