A.M. Best Maintains Under Review Status on Ratings of Meadowbrook Insurance Group, Inc. and Its Subs
Mar 1st 2013 4:51PM
Updated Mar 1st 2013 5:35PM
A.M. Best Maintains Under Review Status on Ratings of Meadowbrook Insurance Group, Inc. and Its Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has maintained the under review with negative implications status on the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "a-" of the subsidiaries of Meadowbrook Insurance Group, Inc. (MIGI) (Southfield, MI) (NYS: MIG) , which operate under an intercompany reinsurance pooling agreement. A.M. Best also has maintained the under review with negative implications status on the ICR of "bbb-" of MIGI. (See below for a detailed listing of the companies and ratings.)
Maintenance of the under review status is in follow up to the rating actions taken by A.M. Best on October 19, 2012 and is in response to some of the remedial actions taken by MIGI since its third quarter earnings announcement and reserve charge. Among the actions taken by management since that time include capital enhancements through the monetization of investments, quota share reinsurance (surplus relief) and the termination of certain underperforming books of business. Other factors A.M. Best has considered since that time include management's guidance in 2013 and its expectation to restore profitability and capital via retained earnings.
The ratings will remain under review as A.M. Best continues to evaluate MIGI's corrective actions.
The FSR of A- (Excellent) and ICRs of "a-" remain under review with negative implications for the following Meadowbrook Insurance Group, Inc. subsidiaries:
- Star Insurance Company
- Century Surety Company
- Savers Property and Casualty Insurance Company
- ProCentury Insurance Company
- Williamsburg National Insurance Company
- Ameritrust Insurance Corporation
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
Kenneth Monahan, 908-439-2200, ext. 5342
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
KEYWORDS: United States Europe North America Michigan New Jersey
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