AM Best upgrades The General to A-plus after being acquired by Sentry

By Isha Marathe

Feb 20 - The General has had its financial strength rating (FSR) upgraded to A-plus from A and its long-term issuer credit ratings (ICRs) raised to “aa-minus” from “a-plus” by AM Best in the wake of the carrier’s acquisition by Sentry Insurance Group.

The ratings upgrades apply to Permanent General Assurance Corporation, the Permanent General Assurance Corporation of Ohio and General Automobile Insurance Company, a trio of companies collectively known as The General.

In its update, AM Best said the ratings are no longer under review with positive implications, and their outlook is stable.

The three firms under The General moniker are newly added subsidiaries of Wisconsin-based Sentry Insurance Group.

AM Best said the ratings reflect the strategic position The General's entities will hold within Sentry and the execution of an inter-company quota share agreement.

The ratings agency added that Sentry will provide significant operational and financial support to The General.

As reported by The Insurer in January, Sentry completed the acquisition of The General from American Family Insurance Group for approximately $1.0 billion in cash and considerations.

Including the value of assumed liabilities and required capital, the total transaction value was $1.7 billion.

The deal closed on December 31, 2024 after first being announced in September last year.

It is the largest acquisition in Sentry's 120-year-long history, and following its completion, The General will maintain its Nashville, Tennessee office.

The General and Sentry, through its Dairyland brand, serve the non-standard auto (NSA) market.

AM Best said 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.