OLDWICK, N.J. — Heritage Indemnity Company has retained its financial strength rating and issuer credit rating of “A” (Excellent) following the recent announcement of its agreement with AmTrust Financial Services, according to A.M Best.
AmTrust has entered into a definitive agreement to acquire Warranty Solutions, a Wells Fargo business, for $152 million in cash. Warranty Solutions, which includes HICO, designs and markets, administers, and underwrites vehicle service contracts for new and used automobiles through a national network of independent agents and franchised and independent dealers.
Pending regulatory approval, the parties anticipate the closing will occur in the third quarter of 2015. The ratings for Heritage Indemnity reflect the company’s solid risk-adjusted capitalization, consistently favorable results and geographic diversification, officials said.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process.