AM Best withdraws ratings for Consolidated National Insurance in September 2024
- AM Best has withdrawn the Financial Strength Rating and Long-Term Issuer Credit Rating for Consolidated National Insurance Company.
- The withdrawal follows the completion of a transaction where Everspan Insurance Company sold CNIC to Hagerty Insurance Holdings Inc.
- This action indicates potential changes in CNIC's financial outlook and market position.
On September 11, 2024, AM Best announced the withdrawal of the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) for Consolidated National Insurance Company (CNIC), based in Littleton, Colorado. This decision came after the completion of a transaction in which Everspan Insurance Company sold CNIC to Hagerty Insurance Holdings Inc. The ratings were previously under review with developing implications prior to their withdrawal. AM Best's standard procedure involves producing a final rating opinion alongside a rating withdrawal. However, in this case, a final rating opinion could not be generated due to insufficient forward-looking financial information necessary for the completion of the rating. This lack of information hindered the ability to assess CNIC's future financial stability and performance accurately. The withdrawal of CNIC's ratings reflects significant changes in ownership and potential shifts in operational strategy following the acquisition by Hagerty Insurance Holdings Inc. The implications of this transaction may affect CNIC's market position and its ability to maintain its previous ratings in the future. AM Best, a global credit rating agency specializing in the insurance sector, continues to monitor the situation and will provide updates as more information becomes available. The agency operates in over 100 countries and is recognized for its expertise in assessing the financial health of insurance companies.