AM Best Comments on Credit Ratings of CSE Insurance Group's Members Following Acquisition Termination Agreement
AM Best has commented that the under review with developing implications status for the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of "bbb-" (Good) of Civil Service Employees Insurance Company and CSE Safeguard Insurance Company, which together comprise CSE Insurance Group (CSE Group) (domiciled in Walnut Creek, CA), remain unchanged following the announcement that Société de Groupe d'Assurance Mutuelle Covéa (Covéa) and Porch Group, Inc. have executed a mutual termination of the acquisition agreement, which was entered into in September 2021 by both parties.
On Aug. 9, 2022, Porch Group, Inc. announced that it had executed a mutual termination agreement with Covéa to terminate the acquisition of CSE Group and simultaneously withdrew its application for approval to acquire CSE Group from the California Department of Insurance, which was assumed previously to close in the second or third quarter of 2022.
CSE Group's Credit Ratings (ratings) will remain under review with developing implications until AM Best completes its analysis of perspective business plans and assesses the strategic plans of the existing parent following further discussions with company management.
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