AM Best Places Credit Ratings of Merit Life Insurance Co. Under Review with Developing Implications

AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of bbb- of Merit Life Insurance Co. (Merit) (Fort Worth, TX).

The Credit Ratings of Merit, which were last updated in December 2018, were placed under review with developing implications due to the recent public disclosure by its parent, OneMain Holdings, Inc. (OneMain), of its intent to divest the entity. OneMain indicated in its most recent public filing that it had entered into a share purchase agreement with a third-party insurance holding company to sell all of the issued and outstanding shares of Merit. The transaction is expected to close early in the third quarter of 2019. The ratings will remain under review pending upcoming discussions with the acquirers management, including analysis of proforma projections of capital and earnings, for assessment of the potential impact on the companys current ratings.

This press release relates to Credit Ratings that have been published on AM Bests 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 Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Kate Steffanelli
Senior Financial Analyst
+1
908 439 2200, ext. 5063

[email protected]

Michael
Adams

Senior Financial Analyst
+1 908 439 2200,
ext. 5133

[email protected]

Christopher
Sharkey

Manager, Public Relations
+1 908 439
2200, ext. 5159

[email protected]

Jim
Peavy

Director, Public Relations
+1 908 439
2200, ext. 5644

[email protected]