Fitch Ratings has upgraded the insurer financial strength ratings of the Encompass companies to ‘AA+’ from ‘A-‘. The Rating Outlook is Stable.
The upgrade reflects Allstate’s acquisition of the Encompass companies from CNA Financial Corp. Allstate had been servicing and reinsuring the business from the Encompass companies as part of CNA’s exit from the personal lines business in 1999. Allstate exercised its option within the agreement to purchase the Encompass companies in October 2005.
The Encompass companies provided Allstate access to the independent agent distribution channel, which represents a core strategy for Allstate. The assigning of Allstate’s property/casualty group financial strength rating to the Encompass companies is supported by the reinsurance protection provided by Allstate Insurance Co. as well as the general integration of Encompass’s operations into Allstate.
Fitch upgraded the following ratings with a Stable Outlook:
Encompass Home and Auto Insurance Co.
Encompass Independent Insurance Co.
Encompass Insurance Company of America
Encompass Insurance Company of Massachusetts
Encompass Property and Casualty Co.
— Insurer financial Strength rating to ‘AA+’ from ‘A-‘.
Source: Fitch
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