AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings to “aa-” (Superior) from “a+” (Excellent) of Permanent General Assurance Corporation, Permanent General Assurance Corporation of Ohio, and General Automobile Insurance Company. The outlook assigned to these Credit Ratings (ratings) is stable. These companies collectively do business as The General (headquartered in and are newly added subsidiaries of Sentry Insurance Group (Sentry).
The General’s ratings reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Sentry acquired The General from American Family Insurance Group for approximately $1.0 billion in cash and consideration. Including the value of assumed liabilities and required capital, the total transaction value was $1.7 billion. The transaction closed on Dec. 31, 2024. The General and Sentry, through its Dairyland brand, have served the non-standard auto (NSA) market for more than 60 years. The General has built a strong reputation in direct-to-consumer NSA, while Dairyland is known for serving customers through its independent agent network. For customers, this will mean more flexibility in choosing how they want to purchase insurance, whether through an agent or directly.
The ratings of The General reflect the strategic position its entities will hold within the organization and the execution of an inter-company quota share agreement. Sentry will provide significant operational and financial support to The General.
Topics
Mergers & Acquisitions
AM Best
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