OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has commented that the under review with negative implications status, the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Tri-State Consumer Insurance Company (Tri-State) (Jericho, NY) remains unchanged following the termination of the stock purchase agreement with Standard Diversified Inc.
Tri-State’s Credit Ratings (ratings) will remain under review with negative implications until AM Best completes its discussions with management and completes its analysis of the company’s most-recent financial results and perspective business plan.
AM Best placed Tri-State’s ratings under review with negative implications on Dec. 10, 2018, following the announcement of the stock purchase agreement to sell Tri-State to Standard Diversified Inc. The negative implications were due in part to uncertainty regarding Tri-State’s future business model and capitalization under the new ownership group, as well as the ongoing concerns surrounding the negative outlook that AM Best had placed on the company’s ratings prior to the ratings going under review. The negative outlook was driven by adverse trends in underwriting results that deteriorated to levels not consistent with prior-year results.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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