A.M. Best Places American Heritage Life Under Review Following News of Allstate's Plan to Acquire.OLDWICK, N.J.--(BUSINESS WIRE)--July 12, 1999-- A.M. Best Co. today placed the ratings of American Heritage American Heritage can refer to:
The action followed the announcement that the Allstate Corp. has reached a definitive agreement to acquire American Heritage Life Investment Corp. (AHLIC), a publicly traded insurance holding company, for approximately $900 million in stock and cash. Under the agreement, Allstate also will assume AHLIC's obligations under its outstanding mandatorily redeemable Redeemable Eligible for redemption under the terms of an indenture. preferred securities, bringing the total consideration for the deal to $1.1 billion. The transaction, which has been approved by the boards of both Allstate and AHLIC, is being treated as an acquisition for accounting purposes. American Heritage Life is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AHLIC and is the organization's lead life and health insurer. American Heritage Life is the third-largest distributor in the nation of life, disability and health insurance products in the work-site market. The company has developed relationships with more than 15,000 active employers to market payroll deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. products in the work place. In addition, American Heritage Life and its operating affiliates market group life and health products to small and mid-size employers, and offer credit life and disability policies on consumer loans to customers of various banks, auto dealerships and consumer finance companies. The organization's marketing activities are focused primarily in the Southeastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . A.M. Best will review the post-acquisition organization and pro-forma financial information, as well as plans to integrate operations and develop cross-marketing opportunities. The rating will remain under review pending A.M. Best's discussions with management regarding the ongoing operations and the close of the transaction, which is expected by the end of the year. The transaction is subject to regulatory and shareholder approval. A.M. Best views the transaction favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , as it allows for product expansion and additional cross-selling opportunities for both companies. This acquisition is part of Allstate's plans to broaden and strengthen its multi-channel, multi-product, multi-brand strategy. Allstate plans to use its national presence to expand American Heritage Life's business throughout the country. The existing management of the acquired company will continue to run the business under its current brand name, and the company's headquarters will remain in Jacksonville, Fla. Currently, American Heritage Life, Florida, is rated A+ (Superior). The company's life and health insurance affiliates are rated as follows: Columbia Universal Life Insurance Co., Texas, A- (Excellent); Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. Heritage Life Insurance Co., New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , B++ (Very Good); and, Keystone key·stone n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. State Life Insurance Co., Pennsylvania, B+ (Very Good). In addition, the B++ (Very Good) rating of American Heritage Life's property/casualty affiliate, First Colonial Insurance Co., Florida, is unaffected. The ratings of Allstate's property/casualty and life/health affiliates are unaffected, as the transaction imposes no material impact on Allstate's overall operating profile and financial flexibility. Allstate is the largest publicly traded U.S. auto and home insurer, engaged in property and casualty insurance, as well as life and health insurance, and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . A.M. Best believes this transaction, despite initially being somewhat dilutive to earnings, enhances Allstate's operating flexibility, business scope and product diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. by providing new distribution opportunities and immediate access to a broad range of complementary insurance products. A.M. Best views this transaction favorably for Allstate and expects a successful integration will provide a strong complement to the organization's domestic financial services operations. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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