A.M. Best has maintained the under review status with developing implications for the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” and the Long-Term Issue Credit Ratings (Long-Term IR) of Kemper Corporation (Kemper Corp.) [NYSE:KMPR], as well as for the Long-Term ICRs and Financial Strength Ratings (FSRs) of its property/casualty and life/health operating subsidiaries, following the close of the acquisition of Infinity Property and Casualty Corporation (Infinity) (headquartered in Birmingham, AL).
Concurrently, A.M. Best has maintained the under review status with negative implications for the Long-Term ICR of “bbb” of Infinity, as well as for the FSR of A (Excellent) and the Long-Term ICR of “a” of its operating subsidiaries, collectively referred to as the Infinity Property & Casualty Group. (See below for a detailed listing of the companies.)
A.M. Best placed all the Credit Ratings (ratings) under review on Feb. 15, 2018. At that time, A.M. Best indicated that the ratings would remain under review until greater insight was gained into the overall impact of the merger on the group’s business profile, operating performance and levels of risk-adjusted capitalization.
As noted above, while the transaction closed on July 2, 2018, A.M. Best’s review of the impact of the transaction is continuing. A.M. Best will monitor developments and take rating action as conditions warrant.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain under review with developing implications for the following members of the Kemper Property & Casualty Group:
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain under review with developing implications for the following members of Kemper Life & Health Group:
The following Long-Term IR remains under review with developing implications:
-- “bbb-” on $450 million 4.35% senior unsecured notes, due 2025
-- “bb+” on $150 million 7.375% subordinated debentures, due 2054
The following indicative Long-Term IRs for securities available under the shelf registration remain under review with developing implications:
-- “bbb-” on senior unsecured debt
-- “bb+” on subordinated debt
-- “bb” on preferred stock
The FSR of A (Excellent) and the Long-Term ICRs of “a” remains under review with negative implications for the following members of Infinity Property & Casualty Group:
The following Long-Term IR remains under review with negative implications:
Infinity Property and Casualty Corporation—
--“bbb” on $275 million 5% senior unsecured notes, due September 2022
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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