CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 08, 2011 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit rating (ICR) of "a" of First Mercury Insurance Company (FMIC). Additionally, A.M. Best has affirmed the FSR of A (Excellent) and ICR of "a" of American Underwriters Insurance Company (AUIC) (Conway, AR), formerly reinsured by FMIC.
Concurrently, as a result of the establishment of reinsurance agreements between United States Fire Insurance Company (US Fire), FMIC and AUIC, these companies have become members of the Crum & Forster Insurance Group (the C&F Group) (Morristown, NJ), of which US Fire is a member. Valiant Insurance Company (VIC) and Valiant Specialty Insurance Company (VSIC), reinsured affiliates of FMIC, also have become members of the C&F Group. The FSR of A (Excellent) and ICR of "a" of the C&F Group are unchanged by these actions. The outlook for all ratings is stable. All companies are indirect subsidiaries of Fairfax Financial Holdings Limited (Fairfax), a Canadian property/casualty holding company.
In addition, A.M. Best has withdrawn the FSRs of A (Excellent) and ICR of "a" of First Mercury Casualty Company (FMCC) and First Mercury Group. FMCC was merged with and into FMIC effective July 1, 2011 and the group's remaining four members—FMIC, AUIC, VIC and VSIC—have become members of the C&F Group.
A.M. Best also has upgraded the ICR to "bbb" from "bbb-" of First Mercury Financial Corporation. The rating has been removed from under review with positive implications. At the same time, A.M. Best has withdrawn the ICR as the company is now an intermediate holding company within the Fairfax enterprise. All companies are headquartered in Southfield, MI, unless otherwise specified.
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"; 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.