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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 17, 2007 12:00 AM (EDT)
A.M. Best Co. has commented that the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of "aa-" of Munich Re Group (Munich) (Germany) and the FSR of A (Excellent) and the ICRs of "a" of Munich Re America Corporation Group (MRACG) (Princeton, NJ) remain unchanged following Munich's announcement that it intends to acquire The Midland Company (Midland) (Amelia, OH).
Midland and its operations will be acquired for approximately $1.3 billion in an all cash transaction. These operations include the American Modern Insurance Group (AMIG) (Cincinnati, OH), a group of eight companies providing residential property, recreational casualty, financial institutions and other specialty products in the United States. The acquisition expands Munich's primary product offerings in the United States, provides access to new markets and potential cross-selling opportunities. Munich plans to integrate the operations of both AMIG and MRACG following the completion of the acquisition.
The acquisition is expected to close in second quarter 2008, pending regulatory approvals.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.