JUNE 16, 2010 12:00 AM (EDT)
A.M. Best Places Ratings of Casco Indemnity Company Under Review with Developing Implications
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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 16, 2010 12:00 AM (EDT)
A.M. Best Co. has placed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Casco Indemnity Company (Casco) (Saco, ME) under review with developing implications following the recent announcement that its majority parent organization, The Hingham Group, has entered into an affiliation agreement with NLC Insurance Companies (NLC). Subsequent to the affiliation, Casco will continue to be separately rated and The Hingham Group will participate in the intercompany pooling agreement led by New London County Mutual Insurance Company (Norwich, CT).
As a result of the affiliation, it is anticipated that Casco's ratings will no longer be impacted via its majority ownership by The Hingham Group. However, in A.M. Best's view, given the company's ongoing poor operating performance and continued declines in risk-adjusted capitalization, uncertainty exists regarding its future strategic direction as part of NLC. The ratings of Casco will remain under review pending further discussions with management, with a final closing expected in the third quarter of 2010.
Casco primarily writes private passenger automobile insurance products in Rhode Island, New Hampshire, Maine and Connecticut.
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.