Stonetrust Insurance Credit Ratings Unchanged Amid Acquisition of Southern Vanguard

AM Best said that the Credit Ratings (ratings) of Southern Vanguard Insurance Company (Southern Vanguard) (Austin, Texas) and the members of Stonetrust Insurance Group (Stonetrust) (Baton Rouge, Louisiana) remain unchanged following the May 27, 2025, announcement that Wintaai America Inc. (Wintaai), Stonetrust’s holding company, will be acquiring Southern Vanguard, subject to regulatory approval.

The members of Stonetrust have a Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) with positive outlooks. Southern Vanguard has an FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent) with stable outlooks.

Wintaai owns 99.94% of Stonetrust and the remaining is owned by various employees. Wintaai will own 100% of Southern Vanguard following conclusion of the transaction, which is pending regulatory approval and expected to close by July 2025. Aside from the transaction cost, Wintaai will also add capital to Southern Vanguard as a post-close contribution.

AM Best said it does not expect the transaction to have any material change to either the rating unit’s rating fundamentals or business operations. The credit ratings agency will continue to evaluate each of these organizations independently while monitoring the progress and the effects of this transaction over time.

Mike Dileo will remain president and chief executive officer of Stonetrust and Cory Moulton will remain president and chief executive officer of Southern Vanguard. Prospectively, the companies will continue to operate independently under common ownership. Stonetrust will maintain its headquarters in Baton Rouge, LA, and Southern Vanguard will maintain its headquarters in Austin, TX.

The members of Stonetrust are Stonetrust Commercial Insurance Company and Stonetrust Premier Casualty Insurance Company. Southern Vanguard is a single entity.

Topics
Mergers & Acquisitions