OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best has placed under review with negative implications the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of Infinity Property & Casualty Corporation (Infinity) (NASDAQ:IPCC), the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” of its operating subsidiaries, collectively referred to as the Infinity Property & Casualty Group. A.M. Best also has placed under review with negative implications the Long-Term Issue Credit Ratings (Long-Term IR) of Infinity. (See below for a detailed listing of the companies and Credit Ratings (ratings).
The rating actions follow the Feb. 13, 2018, announcement by Infinity that it has entered into a definitive merger agreement with Kemper Corporation (Kemper) [NYSE: KMPR], in which Kemper will acquire Infinity and its insurance subsidiaries for approximately $1.4 billion, in a cash and stock transaction expected to close in the third quarter of 2018.
The ratings will remain under review until the transaction closes, and A.M. Best completes its evaluation of the transaction and its implications for Infinity. The negative implications are primarily due to the larger, lower rated Kemper, which will be the surviving entity.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been placed under review with negative implications for the following members of Infinity Property & Casualty Group:
- Infinity Insurance Company
- Infinity Assurance Insurance Company
- Infinity Auto Insurance Company
- Infinity Casualty Insurance Company
- Infinity Indemnity Insurance Company
- Infinity Preferred Insurance Company
- Infinity Safeguard Insurance Company
- Infinity Security Insurance Company
- Infinity Select Insurance Company
- Infinity Standard Insurance Company
- Infinity County Mutual Insurance Company
The following Long-Term IR has been placed under review with negative implications:
Infinity Property & Casualty Corporation—
--“bbb” on
$275 million 5% senior unsecured notes, due September 2022
The following indicative Long-Term IRs for securities available under shelf registration have been placed under review with negative implications:
Infinity Property & Casualty Corporation—
--“bbb” on
senior unsecured debt
--“bbb-”on subordinated debt
--“bb+” on
junior subordinated debt
--“bb+” on preferred stock
This press release relates to Credit Ratings 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. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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