The credit ratings of Bermuda-based Hagerty Reinsurance will not be affected by parent company Hagerty Insurance Holdings’ planned acquisition of Consolidated National Insurance Company, AM Best says.
The transaction, set to be completed through a stock purchase agreement with Everspan Insurance Company is part of Hagerty’s strategy to expand its insurance offerings and establish a new carrier platform with Consolidated National Insurance Company, aiming to enhance its business model by diversifying its insurance products and reinforcing its underwriting profit margins and premium growth.
The acquisition is also expected to have no significant effect on the financial strength of Hagerty Re’s balance sheet, nor is it expected to impact Hagerty in the near term materially, AM Best noted.
That said, the credit agency has indicated it will keep a close watch on the developments of the transaction up to its completion. AM Best also noted that it might reassess its ratings should there be any significant changes or developments.
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