Fitch Finds Positives In AFG Selling Infinity Shares
NU Online News Service, Dec. 19, 3:30 p.m. EST
The New York-based ratings agency also announced that it will not take any ratings actions on either insurer, since Fitch has already been expecting American Financial to eventually divest its remaining Infinity shares.
Infinity went public on the NASDAQ Market last February, but prior to its initial public offering, it was owned by American Financial Group.
Based in Birmingham, Ala., Infinity is currently the second-largest writer of policies for high-risk drivers in the United States, behind Progressive Corp. in Mayfield Village, Ohio, according to Fitch.
Fitch observed that the completed sale of Infinity shares reflects American Financial's progress in exiting p-c personal lines, while for Infinity, the transaction demonstrates its ability to divest its ties to the former parent company.
American Financial also announced that the proceeds from the sale will be used to support further growth in its specialty p-c lines and improve its financial leverage position.
The Cincinnati-based American Financial, through operations of Great American Insurance Group, primarily offers p-c insurance and focuses on specialized commercial products for businesses. It also offers annuities, life and supplemental health insurance products.
Currently, Fitch Ratings maintains an "A-plus" insurer financial strength rating for American Financial's Great American Insurance inter-company pool, and it has an "A" insurer financial strength rating for Infinity Property and Casualty's insurance operations.
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