20 May 2020Insurance

Topa Insurance acquisition deal called off; rating agency reacts

US property and casualty (P&C) insurance carrier Topa Insurance Group (TIG) and Altamont Capital Partners "will not go forward" with their previously announced acquisition deal, the companies have confirmed.

The two companies signed a definitive agreement in July 2019 wherein Altamont would acquire TIG from Topa Equities, which would maintain a minority equity stake in the business following the closing.

Topa and Altamont have scrapped the deal by "mutual agreement", according to ratings agency AM Best.

Best has removed from under review with developing implications and affirmed the financial strength rating of A- of Topa and its subsidiary Dorchester Insurance Company.

The agency has assigned a negative outlook to its ratings, reflecting "challenges the group faces to improve operating results in the near term given the potential for further adverse reserve development in the commercial auto liability line and ongoing expense pressures as the group works to gain traction with operating efficiencies and increase in scale."

It noted that Topa has reported consistently negative underwriting results and low overall operating profitability over the past five years, and the group is expected to produce an additional underwriting loss in 2020.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
10 November 2021   The appointee has held various roles at Swiss Re and Farmers Insurance.
Technology
13 May 2020   Digital colleagues are already working alongside humans taking on admin and allowing people to do more value-added work. Ahead of the Intelligent Insurer webinar ‘Intelligent Automation - Transform Inefficient Operations’, panellist Hugh Pelling from Blue Prism Cloud shares his inside take on the trends to watch.
Insurance
11 May 2020   The executive has worked with Topa's executive team to exit lines of business that were unprofitable or inconsistent with the company’s strategy.