|[January 04, 2013]
A.M. Best Places Ratings of First Nonprofit Insurance Company Under Review With Positive Implications
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has placed under review with positive implications
the financial strength rating of A- (Excellent) and issuer credit rating
of "a-" of First Nonprofit Insurance Company (FNIC) (Chicago, IL).
The under review status follows the announcement that FNIC has entered
into a definitive agreement under which it will become part of the AmTrust
Financial Services, Inc. group. As part of the transaction, FNIC's
parent, Mutual Insurers Holding Company will be demutualized and
converted into a stock holding company, which will continue to own FNIC.
The positive implications reflect the expected benefits to be derived by
being part of a much larger organization with access to additional
financial and managerial resources.
The transaction is expected to close during the first half of 2013 ad
is subject to regulatory and policyholder approval.
The principal 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. Key criteria utilized include: "Risk
Management and the Rating Process for Insurance Companies";
"Understanding BCAR for Property/Casualty Insurers"; and "Rating
Members of Insurance Groups." 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
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