Market Overview

A.M. Best Downgrades and Withdraws Credit Ratings of Kanawha Insurance Company


A.M. Best has removed from under review with negative
implications and downgraded the Financial Strength Rating to B (Fair)
from B++ (Good) and the Long-Term Issuer Credit Rating to "bb+" from
"bbb+" of Kanawha Insurance Company (Kanawha) (Lancaster, SC). The
outlook assigned to these Credit Ratings (ratings) is stable.
Concurrently, A.M. Best has withdrawn the ratings as the new parent
company, HC2 Holdings, Inc. (HC2), has requested to no longer
participate in A.M. Best's interactive rating process.

The ratings reflect Kanawha's balance sheet strength, which A.M. Best
categorizes as adequate, as well as its weak operating performance,
limited business profile and appropriate enterprise risk management.

The ratings had previously received lift from its prior ultimate parent
organization, Humana Inc., based on Humana's financial strength, as well
as its historical implicit and explicit support of Kanahwa. The
downgrades reflect the withdrawal of this ratings enhancement, following
the announcement on Aug. 9, 2018, of the completion of the sale of
Kanawha to Continental General Insurance Company, a Texas-based
insurance company wholly owned by HC2.

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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