HONG KONG Oct 7 (Bernama – BUSINESS WIRE)– AM Best has commented that the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF) (Japan) and its U.S. subsidiaries remain unchanged following an acquisition announcement by their parent company, Tokio Marine Holdings Inc. (TMH). The outlook of these Credit Ratings (ratings) remains stable.
This comment follows the announcement that TMH has entered into a definitive agreement to acquire Privilege Underwriters, Inc. (PUI) and its subsidiaries, which includes PURE Risk Management LLC and PURE Insurance Company (PIC). PURE Risk Management LLC is the attorney-in-fact for Privilege Underwriters Reciprocal Exchange (PURE). PURE is a member-owned reciprocal exchange serving the personal insurance needs of high-net-worth individuals and families across the United States. PIC provides reinsurance to PURE. TMH will acquire PUI for USD 3.1 billion, which will be financed through a combination of existing resources and a potential subordinated bond issue. This transaction is expected to close in the first quarter of 2020, subject to regulatory approvals.