A.M. Best Removes From Under Review With Positive Implications and Affirms Credit Ratings of Dealers Assurance Company
Feb 19, 2018, 14:13 PM
OLDWICK, N.J.–(BUSINESS WIRE)–February 19, 2018–A.M. Best has removed from under review with positive implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Dealers Assurance Company (DAC) (Columbus, OH). The outlook assigned to these Credit Ratings (ratings) is positive.
The ratings reflect DAC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
A positive outlook has been assigned to the ratings due to the potential future benefits from DAC being added to the Industrial Alliance Financial Group (Industrial Alliance, iA) family. The acquisition of DAC by iA was completed on Jan. 23, 2018. A.M. Best expects DAC to recognize long-term benefits through Industrial Alliance’s years of industry knowledge and expertise, additional capital support, expanded market opportunities and reduced expenses via shared back-office resources.
DAC’s ratings could be positively impacted by explicit financial support from the parent company, through demonstrated operational efficiencies and cost savings due to integration into the iA family, or through diversification in the company’s risk profile. The company’s ratings could face downward pressure from declines in capital levels, degrading operating performance, or a shift to reliance on investment results, which are historically lower than peers.
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.
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SOURCE Business Wire