AM Best Places Credit Ratings of Electric Insurance Company Under Review With Negative Implications

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OLDWICK, N.J., October 27, 2023–(BUSINESS WIRE)–AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of Electric Insurance Company (EIC) (Beverly, MA).

The Credit Rating (rating) actions follow the recent disclosure by General Electric Company of signing a binding agreement to sell the property/casualty company, with the expectation to complete the sale, subject to regulatory approvals and other customary closing conditions, in the first half of 2024.

Following this announcement, there is a potential for negative rating actions for the FSR and the Long-Term ICR as a result of being detached from the parent company and the associated strategic benefits therein. The ratings will remain under review with negative implications while AM Best will remain in communication with EIC’s management and monitor the effects of the transaction as they evolve.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231027458978/en/

Contacts

Chul Lee
Senior Financial Analyst
+1 908 882 2005
chul.lee@ambest.com

Fred Eslami
Associate Director
+1 908 882 1759
fred.eslami@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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