Gateway Rivers Insurance Company and Palm Insurance Company have completed their merger following AT&T’s acquisition of TV satellite provider DIRECTV.
US telecoms company AT&T’s Texas-domiciled captive, Gateway Rivers, received affirmations of its financial strength and credit ratings from A.M. Best after completion of its merger with DIRECTV's Hawaii-domiciled single-parent captive Palm Insurance.
AT&T completed its $49 billion acquisition of DIRECTV in July 2015, creating the largest pay TV provider in the US.
According to A.M. Best, the affirmed ratings and outlook reflect Gateway’s strong capitalisation, comprehensive risk management and favourable operating results, providing insurance coverage to subsidiaries of AT&T.
Partially offsetting these positive rating factors are Gateway’s exposure, although small, to Palm Insurance’s unseasoned business and Gateway’s large limits on its property lines of business.
Despite the affirmations, Gateway Rivers, formed in 2014, has requested to be withdrawn from the A.M. Best rating process.
