AFG plans to use the net proceeds of the offering for general corporate purposes including share repurchase. Following the new issuance, AFG’s unadjusted financial leverage ratio will increase modestly to nearly 30% and remain within AM Best’s guidelines for AFG’s current ratings. AFG’s interest coverage ratio will remain strong at over 10 times.
AFG continues to benefit from consistently positive operating earnings of its insurance subsidiaries, which are reflective of profitable underwriting results supported by a diversified product portfolio and business profile through its multiple distribution platforms, in addition to significant investment income.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit http://www.ambest.com.
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