At a glance
- The sale is expected to close in the first quarter of 2027, subject to regulatory approvals and customary closing conditions.
- The long-term issuer credit rating of "a-" (Excellent) is under review on the same basis.
- For a cedent pricing a treaty or booking a recoverable against that A-, the review shifts attention to the support Providence Washington will carry after closing.
AM Best placed the A- (Excellent) financial strength rating of Providence Washington Insurance Company under review with developing implications on Oct. 30, after Everspan Group said it had a definitive agreement to sell the insurer to Falvey Insurance Group.
The sale is expected to close in the first quarter of 2027, subject to regulatory approvals and customary closing conditions. The long-term issuer credit rating of "a-" (Excellent) is under review on the same basis.
For a cedent pricing a treaty or booking a recoverable against that A-, the review shifts attention to the support Providence Washington will carry after closing. AM Best said the action reflects its expectation of changes to PWIC's relationship with, and rating support from, Everspan at closing. The rating stays A- while the review runs, and AM Best said it will continue discussions with management throughout the period.
Everspan expects the sale to have a positive impact on its tangible book value with no material impact on the group's operations, and characterizes the transaction as part of initiatives to improve operational efficiencies without diminishing the group's capabilities.
Reported by the Insurer portfolios desk from AM Best News. Published . Corrections