NU Online News Service, Oct. 11, 2:51 p.m. EDT

Delos Insurance Group's rating from A.M. Best Co. is under review with negative implications following the merger of its holding company with Southwest Insurance Partners, Inc.

The rating agency said the under review status "reflects the uncertainties associated with this transaction, including changes in strategic direction and any potential market/agency dislocation as a result of this merger" and the youth of Delos, which started operations in 2006.

Delos underwrites through program administrators. Southwest Insurance Partners (SWIP) uses independent agents.

In November 2009, A.M. Best affirmed the financial strength rating of "A-minus" (Excellent) for Delos Insurance Group, a writer of program business.

The merger between Lightyear Delos Acquisition Corp. and SWIP is expected to close in the fourth quarter. Stephen L. Way, managing director of SWIP, is to become chairman and chief executive officer of the new group of companies, headquartered in Houston.

Delos will continue to operate from New York.

The holdings companies said the new group will have more than $1 billion in assets and more than $625 million in investment assets, with $250 million in shareholders' equity.

Special Reports /

Uncertainty With Distribution Puts Delos Insurance Under Review

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