AUGUST 03, 2007 12:00 AM (EDT)
A.M. Best Comments on Erie Indemnity's Announcement of Chief Executive Change
(908) 439-2200, ext. 5794
Jeffrey Mango, CPA
(908) 439-2200, ext. 5204
(908) 439-2200, ext. 5644
(908) 439-2200, ext. 5378
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 03, 2007 12:00 AM (EDT)
A.M. Best Co. has had discussions with senior management of Erie Indemnity Company (Erie Indemnity) [NASDAQ: ERIE], regarding the recent announcement that its president and chief executive, Jeffrey A. Ludrof, will be leaving the company due to personal reasons. A.M. Best does not anticipate any material near-term change in operations or financial condition of Erie Insurance Group (Erie) and its property/casualty members, due to strong risk-adjusted capitalization derived from its disciplined underwriting approach and favorable business profile, despite challenging recent soft market conditions.
John J. Brinling Jr., who was executive vice president of Erie Family Life Insurance Company until he retired in January 2007, will return to Erie Indemnity and serve as interim president and chief executive, while the board of directors searches for Mr. Ludrof's replacement.
Erie Indemnity is publicly traded and operates as attorney-in-fact for Erie and its property/casualty members. Erie and its property/casualty members have a financial strength rating (FSR) of A+ (Superior) and issuer credit ratings of "aa-". All companies are domiciled in Erie, PA. The outlook for all ratings is stable. (See below for a detailed list of the companies and ratings.)
The FSR of A+ (Superior) and ICRs of "aa-" remain unchanged for Erie Insurance Group and its following property/casualty members:
- Erie Insurance Exchange
- Erie Insurance Company
- Erie Insurance Company of New York
- Erie Insurance Property & Casualty Company
- Flagship City Insurance Company
The FSR of A (Excellent) and ICR of "a" remain unchanged for Erie Family Life Insurance Company.
The ICR of "a+" remains unchanged for Erie Indemnity Company.
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.