OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best has commented that the Credit Ratings (ratings) of The Hartford Financial Services Group, Inc. (The Hartford) (Delaware) [NYSE: HIG] and its subsidiaries remain unchanged following The Hartford’s recent announcement that it has entered into a definitive agreement to acquire The Navigators Group, Inc. (Navigators) (Delaware) [NASDAQ: NAVG].
The definitive agreement is an all-cash transaction that values the Navigators enterprise at approximately $2.1 billion. Under the terms of the agreement, Navigators stockholders will receive $70.00 per share in cash upon the closing of the transaction. The agreement includes a “go-shop” provision, where Navigators will have an opportunity to solicit competing acquisition proposals for 30 days.
Based on the currently available information, A.M. Best does not anticipate that the transaction will have any near-term impact on the ratings of The Hartford or its subsidiaries. Holding company leverage and coverage metrics will remain within guidelines. The current assessments of balance sheet strength, operating performance, business profile and enterprise risk management of The Hartford and its subsidiaries are not expected to be materially affected over the near to medium term by the acquisition of Navigators. A.M. Best will continue to evaluate any developments relative to The Hartford ratings as additional details regarding the transaction terms and integration plans become available.
A.M. Best expects the transaction to close in the first half of 2019, subject to regulatory and stockholder approvals, and other customary closing conditions.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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