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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 30, 2010 12:00 AM (EDT)
A.M. Best Co. has commented that the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "a-" of Utica Mutual Insurance Company (Utica Mutual) (New Hartford, NY) and its affiliates are unchanged following the announcement of its planned acquisition of Founders Insurance Company (Founders) (Des Plaines, IL) and its affiliate, Founders Insurance Company of Michigan (Michigan) (Detroit, MI). Both the FSR of A- (Excellent) and ICR of "a-" of Founders are unchanged. All ratings have a stable outlook.
Although the planned acquisition of Founders will slightly reduce Utica Mutual's risk-adjusted capitalization, Utica Mutual's capitalization will continue to more than support its current rating level. In addition, the planned acquisition is expected to improve the group's geographic footprint, product diversity, as well as offer cross selling opportunities to both Utica Mutual and Founders. The planned acquisition is expected to close sometime in second quarter 2010, pending regulatory approvals.
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.