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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JULY 21, 2009 12:00 AM (EDT)
A.M. Best Co. has withdrawn the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of "aa-" of the merged stock subsidiary company, Tuscarora Wayne Insurance Company (TWIC) (Wyalusing, PA). Effective June 30, 2009, TWIC was merged with and into Tuscarora-Wayne Mutual Insurance Company (TWMIC) (Wyalusing, PA). Concurrently, A.M. Best has assigned an NR-5 (Not Formally Followed) to the merged stock company's FSR and "nr" to its ICR.
During second quarter 2009, the policyholders of TWMIC voted in favor of a conversion from a mutual insurance company to a stock insurance company within a mutual holding company structure, and the company name was changed to Tuscarora Wayne Insurance Company. As a result of the conversion, the company formed Tuscarora Wayne Mutual Group, Inc., a mutual holding company, and the Tuscarora Wayne Group, Inc., a stock holding company. Also due to the conversion, Washington Mutual Fire and Storm Insurance Company (Wyalusing, PA) was converted to a stock insurance company and subsequently renamed Washington Fire & Storm Insurance Company.
The reorganization is expected to enhance the strategic and financial flexibility of TWIC by creating a corporate structure that will enable it to access the capital markets that are not currently available under the mutual form of organization, as well as facilitate growth in future time periods.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
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.