AM Best says Nevada General Insurance's ratings intact by sale agreement

2 November 2010 - AM Best has commented that the financial strength rating (FSR) of A (excellent) and the issuer credit rating (ICR) of "a" of US Nevada General Insurance Co (NGIC) (Las Vegas, NV) are unaffected by local Mutual of Enumclaw Insurance Co's (MOE) announced agreement to purchase 100% of the stock of Chicago-Vegas Holdings Limited Partnership (CVHLP), which owns 100% of the stock of NGIC.

The sale has been approved by the board of directors of CVHLP and the board of trustees of MOE and is subject only to the approval of regulatory authorities, the agency said.

A final closing of the sale is expected prior to year-end, AM Best added.

NGIC is a non-standard personal automobile writer in Nevada, New Mexico and Arizona and will become a wholly-owned subsidiary of MOE.

As such, the analysts expect that the management of NGIC will continue to operate the company as it has in the past and maintain its trend of favourable operating profitability and strong risk-adjusted capitalisation.

Accordingly, AM Best does not anticipate any revision in the ratings as a result of this transaction.