A.M. Best Co. has placed the financial strength rating of A (Excellent) of the members of GE Financial/P&C (Fort Washington, Pa.) under review with developing implications.
The action follows the June 25, announcement that General Electric Company’s (GE) GE Insurance unit agreed to sell GE Property & Casualty Insurance Company and its subsidiaries and GE Edison Life Insurance Company to American International Group for approximately $2.15 billion.
The transaction, which is subject to regulatory approval, is expected to be completed in the third quarter of 2003. The rating will remain under review until regulatory approval is received and discussions are held with management on the integration of these companies into the AIG organization.
In a separate action, the rating of Montgomery Ward Insurance Company, a member of GE Financial/P&C, has been placed under review with negative implications following the aforementioned agreement to sell GE Financial/P&C.
The rating action reflects the uncertainty regarding the company’s role going forward in GE Insurance and the financial and operating impact that the sale of GE Property & Casualty Insurance Company will have on the company. The stand-alone financial strength rating of Montgomery Ward prior to its inclusion in GE Financial/P&C was B++ (Very Good). A.M. Best is involved in regular discussions with Montgomery Ward’s management and GE Insurance and will assign a rating upon completion of the sale of GE Property & Casualty Insurance Company.
The financial strength rating of A (Excellent) has been placed under review with developing indications for the following members of GE Financial/P&C:
GE Property & Casualty Insurance Company
GE Casualty Insurance Company
GE Indemnity Insurance Company
GE Auto & Home Assurance Company
The financial strength rating of A (Excellent) has been placed under review with negative implications for Montgomery Ward Insurance Company.
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