AM Best Comments on Credit Ratings of American Family Insurance Group’s Affiliates and Its Subsidiaries Following Announced Acquisition of Bowhead Specialty Holdings Inc.

AM Best Comments on Credit Ratings of American Family Insurance Group’s Affiliates and Its Subsidiaries Following Announced Acquisition of Bowhead Specialty Holdings Inc.

AM Best has commented that the Credit Ratings (ratings) of American Family Insurance Group’s affiliates (American Family) (headquartered in Madison, WI) and its subsidiaries remain unchanged following its announcement that it will acquire the remaining outstanding shares of Bowhead Specialty Holdings Inc. (Bowhead) [NYSE: BOW], a specialty property/casualty insurer operating in both admitted and non-admitted markets.

The transaction is expected to complement American Family’s existing commercial business and provide additional diversification to its business profile. The transaction values Bowhead at approximately $1.2 billion and American Family’s purchase of the remaining shares that it doesn’t currently own is expected to be funded with assets on hand. The transaction is modest relative to American Family’s overall operations, and AM Best does not expect that it will affect the company’s balance sheet strength or operating performance materially over the near to intermediate terms. The transaction is expected to close in the fourth quarter of 2026 and is subject to certain regulatory approvals and other customary closing conditions.