A.M. Best Co. has put under review the financial strength and issuer credit ratings of Omni Insurance Group Inc. in Atlanta, with negative implications, in the wake of its owner's announcement that it would sell the nonstandard auto insurer.
Hartford Financial Services Group Inc. said Wednesday that it has a definitive agreement to sell Omni to Independent Insurance Investments Inc. in Conshohocken, Pa. The deal is expected to close in the fourth quarter.
The Oldwick, N.J., ratings agency said Thursday that it expects the closing of this deal to prompt a downgrading of Omni's A-minus financial strength rating and a-minus issuer credit rating to levels commensurate with the insurance operations of Independent Insurance Investments. The latter has ratings of B-plus and bbb-minus, respectively.
Hartford's A-plus and aa-minus ratings are unchanged, A.M. Best said.
