{"id":513044,"date":"2021-07-14T11:42:05","date_gmt":"2021-07-14T15:42:05","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-places-credit-ratings-of-state-automobile-mutual-insurance-company-and-its-operating-subsidiaries-under-review-with-positive-implications\/"},"modified":"2021-07-14T11:42:05","modified_gmt":"2021-07-14T15:42:05","slug":"am-best-places-credit-ratings-of-state-automobile-mutual-insurance-company-and-its-operating-subsidiaries-under-review-with-positive-implications","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-places-credit-ratings-of-state-automobile-mutual-insurance-company-and-its-operating-subsidiaries-under-review-with-positive-implications\/","title":{"rendered":"AM Best Places Credit Ratings of State Automobile Mutual Insurance Company and Its Operating Subsidiaries Under Review with Positive Implications"},"content":{"rendered":"

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AM Best Places Credit Ratings of State Automobile Mutual Insurance Company and Its Operating Subsidiaries Under Review with Positive Implications<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of \u201ca-\u201d (Excellent) of State Automobile Mutual Insurance Company<\/span><\/strong> (SAM) and its operating subsidiaries. Concurrently, AM Best has placed under review with positive implications the Long-Term ICR of \u201cbbb-\u201d (Good) of SAM\u2019s intermediate holding company, State Auto Financial Corporation<\/span><\/strong> (STFC) [NASDAQ: STFC]. All of the above companies are headquartered in Columbus, OH. (See below for a listing of the companies.)\n<\/p>\n

\nThe Credit Ratings (ratings) of SAM and its operating subsidiaries have been placed under review with positive implications following the announcement that SAM and STFC entered into an agreement and plan of merger and combination with Liberty Mutual Holding Company Inc. (LMHC) and its subsidiaries. SAM and STFC will merge into two LMHC entities and individually become the surviving members. Under the terms of the agreement, LMHC will acquire all of the publicly held shares of common stock of STFC for $52 per share or approximately $1.0 billion in a cash transaction. The agreement requires SAM member approval, STFC shareholder approval, regulatory approval and other customary closing conditions.\n<\/p>\n

\nThe positive implications status reflects AM Best\u2019s expectation that LMHC will merge SAM and its operating subsidiaries into the existing organization, with the latter benefiting from the strategic relationship and intended support provided by LMHC. The ratings will remain under review until all approvals are finalized, the transaction closes and AM Best evaluates the overall impact.\n<\/p>\n

\nThe ratings have been placed under review with positive implications for the following operating subsidiaries of State Automobile Mutual Insurance Company<\/span><\/strong>:\n<\/p>\n