Business

AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Direct General Life Insurance Company

OLDWICK, N.J., July 24, 2025--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a+" (Excellent) of Direct General Life Insurance Company (Direct General) (Orangeburg, SC). The outlook assigned to these Credit Ratings (ratings) is stable.

articleAllstate Corporation (the)July 24, 20252/company/the-allstate-corporation/news/am-best-removes-from-under-review-with-developing-implications-and-affirms-credit-ratings-of-direct-general-life-insurance-company
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Direct General Life Insurance Company

About this update from Allstate Corporation (the)

[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":2222,"height":1080,"url":"https://media.zenfs.com/en/business-wire.com/1e90d7851bb79639a1802cb359cb08cb"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/f1svU7ExlP69tPeHz37szA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQ2NztjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/1e90d7851bb79639a1802cb359cb08cb","width":960,"height":467},"lightbox":{"url":"https://s.yimg.com/ny/api/res/1.2/WfAlV3CbL2xw7OSg7IQfNQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTI0MDA7aD0xMTY2O2NmPXdlYnA-/https://media.zenfs.com/en/business-wire.com/1e90d7851bb79639a1802cb359cb08cb","width":1200,"height":583}},"lazy":false},{"type":"text","content":"OLDWICK, N.J., July 24, 2025--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a+" (Excellent) of Direct General Life Insurance Company (Direct General) (Orangeburg, SC). The outlook assigned to these Credit Ratings (ratings) is stable.","length":384,"tagName":"p"},{"type":"text","content":"The ratings reflect Direct General’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also include the enhancement, in the form of lift, from the new ultimate parent Nationwide Mutual Insurance Company (Nationwide). Nationwide completed its acquisition of Direct General from The Allstate Corporation (Allstate) [NYSE: ALL] on July 1, 2025. The transaction included the sale of Allstate’s entire group medical stop-loss book of business, which was transferred from other Allstate entities to Direct General prior to closing. As part of the transaction, a capital contribution was made to Direct General to support the larger premium base. The stop-loss business, coupled with fee income from plan administration, is projected to be a stable source of income for Nationwide in the coming years. This business is also deemed to be a positive complement to the existing product offerings and risk profile of Nationwide. Direct General will benefit from Nationwide’s operation capabilities and financial strength as the stop-loss business continue...

More updates from Allstate Corporation (the)

Credit RatingDirect GeneralAllstate Corporationenterprise risk management