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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 01, 2011 12:00 AM (EDT)
A.M. Best Co. has withdrawn the issuer credit rating (ICR) of "bbb-" of Fremont Michigan InsuraCorp, Inc. (Fremont Michigan) (Fremont, MI) [OTCQB: FMMH], following its August 1, 2011, acquisition by Auto Club Insurance Association (ACIA) (Dearborn, MI).
Concurrent with the acquisition, Fremont Michigan is no longer a publicly traded company and has merged with ACG Acquisition Company, Inc., a wholly owned subsidiary of ACIA, with the surviving entity named ACG Fremont InsuraCorp, Inc.
The financial strength rating of A- (Excellent) and ICR of "a-" of ACG Fremont InsuraCorp, Inc.'s wholly owned subsidiary, Fremont Insurance Company, is unaffected as a result of this transaction. The outlook for both ratings is stable.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; "Natural Catastrophe Stress Test Methodology"; "Catastrophe Risk Management Incorporated Within the Rating Analysis"; and "Rating Members of Insurance Groups." Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.