The General's Credit Ratings Upgraded After Acquisition by Sentry
Deal News | Feb 20, 2025 | EIN
AM Best has upgraded the financial strength ratings of Permanent General Assurance Corporation, Permanent General Assurance Corporation of Ohio, and General Automobile Insurance Company, known collectively as The General. These companies, now subsidiaries of Sentry Insurance Group, have seen their Financial Strength Rating rise to A+ and Long-Term Issuer Credit Ratings to aa-. This rating enhancement follows Sentry's acquisition of The General from American Family Insurance Group in a $1.7 billion deal, inclusive of liability and capital assumptions. The transaction, finalized on December 31, 2024, solidifies The General's position within Sentry's structure and reflects the strategic importance of the business in the non-standard auto insurance market. Sentry, through its Dairyland brand, along with The General, offers flexibility in customer service, extending options for purchase via independent agents or direct channels. The upgraded ratings mirror the group's robust balance sheet and improved operational performance, underpinned by Sentry's operational and financial backing.
Sectors
- Insurance
- Financial Services
Geography
- United States – The General and Sentry Insurance Group are key players in the U.S. non-standard auto insurance market.
Industry
- Insurance – The article focuses on credit rating upgrades and acquisition within the insurance industry, specifically around non-standard auto insurance market players, The General and Sentry.
- Financial Services – The credit rating upgrade and acquisition deal are significant financial transactions impacting the companies' operational and strategic positions.
Financials
- $1.7 billion – Total transaction value of the acquisition of The General by Sentry, including liabilities and required capital.
- $1.0 billion – Cash consideration part of the acquisition deal between Sentry and American Family Insurance for The General.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| The General | Target | Company | An auto insurance provider newly acquired by Sentry Insurance Group, focusing on the non-standard market. |
| Sentry Insurance Group | Bidding Company | Company | The acquiring company of The General, known for its Dairyland brand in the auto insurance market. |
| American Family Insurance Group | Selling Company | Company | The former parent company of The General before its acquisition by Sentry Insurance Group. |
| AM Best | Credit Rating Agency | Company | The agency that upgraded the credit ratings for The General following its acquisition by Sentry. |