A.M. Best Comments on Credit Ratings of National Western Life Insurance Company Following Acquisition Announcement
October 9, 2018 by Best's News Service
Oldwick – A.M. Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of National Western Life Insurance Company (NWLIC) (Austin, TX) is unchanged following the Oct. 4, 2018, announcement that NWLIC has entered into a stock purchase agreement to acquire all of the outstanding stock of Ozark National Life Insurance Company (Ozark) (Kansas City, MO) and N.I.S. Financial Services, Inc. from CNS Corporation in exchange for approximately $203 million in cash, subject to certain adjustments. The transaction is expected to close during the first quarter of 2019, subject to customary closing conditions, including regulatory approval. The Long-Term ICR of “bbb” of NWLIC’s parent company, National Western Life Group, Inc., also remains unchanged following the announcement. The outlook of these Credit Ratings (ratings) is stable.
The acquisition, which is consistent with NWLIC’s strategic objective of expanding its life insurance sales, is expected to be initially dilutive to NWLIC’s risk-adjusted capitalization, although it is expected to continue to remain in a range that A.M. Best would assess to be at the strongest level.
A.M. Best anticipates that Ozark will be maintained as a direct subsidiary of NWLIC and continue to operate under its current brand over the near term, while continuing to distribute its own life insurance product through its existing career agency channel.
This press release relates to Credit Ratings that have been published on A.M. Best’s 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.
BN-NJ-10-5-2018 1606 ET #