AM Best Withdraws Credit Rating of Independence Holding Company

BY Business Wire | CORPORATE | 01/10/22 04:28 PM EST

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has withdrawn the Long-Term Issuer Credit Rating of ?bbb-? (Good) of Independence Insurance Holding Company (IHC), headquartered in Stamford, CT. At the time of the withdrawal, this Credit Rating (rating) was under review with developing implications. IHC?s rating was placed under review with developing implications following agreements on the sale of each of its former insurance companies whose sales were completed between the end of 2021 and beginning of 2022, leaving IHC with only a minority stake in one of its former insurance operations, Independence American Insurance Company through its investment in Independence Pet Holdings, Inc.

AM Best?s policy is for a final rating to be completed along with a rating withdrawal. However, a final rating could not be completed, as there are no longer insurance operations wholly or majority owned by this holding company and due to the lack of forward-looking financial information necessary to support the formation of a current rating opinion.

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 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 www.ambest.com.

Copyright ? 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article