At a glance
- The agency also affirmed the company's a- long-term issuer credit rating.
- CopperPoint bought General Indemnity Group, the parent of the Omaha-based surety carrier, from Boston Omaha Corporation in an all-cash deal that closed Oct. 23.
- For brokers and clients with UCS surety exposure, the A- rating remains in force and AM Best said the capital contribution should let UCS report total surplus of about $100 million.
AM Best affirmed United Casualty and Surety Insurance Company's A- financial strength rating on Nov. 13, assigning a positive outlook and removing the surety carrier from under review after CopperPoint completed its purchase. The agency also affirmed the company's a- long-term issuer credit rating.
CopperPoint bought General Indemnity Group, the parent of the Omaha-based surety carrier, from Boston Omaha Corporation in an all-cash deal that closed Oct. 23. The May 18 securities purchase agreement set a gross price of $84.3 million. General Indemnity Group also included BOSS Bonds, a surety placement platform, and SuretyBonds.Market, a technology platform.
For brokers and clients with UCS surety exposure, the A- rating remains in force and AM Best said the capital contribution should let UCS report total surplus of about $100 million.
Immediately before closing, UCS distributed its Sky Harbour Group Class A stock to Boston Omaha, valued at about $25.3 million. At closing, CopperPoint contributed $28.2 million in cash and $51.6 million in fixed income securities. AM Best said the cash offsets the surplus reduction from the distribution and the rest should increase UCS's T-listing.
AM Best assesses UCS's balance sheet strength as very strong, operating performance as adequate, business profile as limited and enterprise risk management as appropriate. The positive outlook reflects the contribution and the benefit of being part of CopperPoint. AM Best cited the contribution as a significant improvement in risk-adjusted capitalization. The agency said it will monitor business synergies and profitable growth.
Reported by the Insurance regulation desk from AM Best News. Published . Corrections