AM Best removes Sentry's new members 'The General' from under review following acquisition

By Isha Marathe

Feb 20 - (The Insurer) - The ratings of Permanent General Assurance Corporation, the Permanent General Assurance Corporation of Ohio and General Automobile Insurance Company (collectively The General) are no longer under review with positive implications by AM Best.

The General's financial strength rating has been upgraded to A-plus from A, while its the long-term issuer credit ratings to “aa-” from “a+”.

The outlook assigned to the ratings is stable.

The firms under The General moniker are newly added subsidiaries of Wisconsin-based Sentry Insurance Group. The ratings reflect the strategic position The General's entities will hold within the organization and the execution of an inter-company quota share agreement, AM Best said, adding that Sentry will provide significant operational and financial support to The General.

Sentry completed the acquisition of The General from American Family Insurance Group for approximately $1.7bn in cash and consideration, The Insurer reported in January.

The deal was first announced in September 2024 and is the largest acquisition in Sentry's 120-year-long history. The General will maintain its Nashville, Tennessee office. The transaction closed on December 31, 2024.

The General and Sentry, through its Dairyland brand, serve the non-standard auto (NSA) market. The General has built a reputation in direct-to-consumer NSA, while Dairyland is known for serving customers through its independent agent network. For customers, this will mean more flexibility in choosing how they want to purchase insurance, whether through an agent or directly, AM Best said.

In 2024, Program Manager reported that Sentry expanded into the marine cargo sector through a partnership with Falvey Insurance Group. Shortly after, it partnered with Aegis Professional Risk to launch a new E&O program before announcing The General acquisition.