CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - NOVEMBER 03, 2011 12:00 AM (EDT)
A.M. Best Co. has placed under review with negative implications the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of "a" of Infinity Specialty Insurance Company (Infinity Specialty) and Infinity General Insurance Company (Infinity General), following the announcement that Infinity Insurance Company (Infinity) has entered into a definitive agreement to sell Infinity Specialty and Infinity General to James River Group, Inc. (Delaware). All the above companies are headquartered in Birmingham, AL, unless otherwise specified.
The placing of the ratings under review with negative implications mainly reflects that Infinity Specialty and Infinity General are being sold to an insurance group whose current ICR of "a-" is lower than the current ICR for the two companies.
The definitive agreement was executed on October 27, 2011, and the transaction is expected to close by year-end 2011, following the receipt of regulatory approval. Infinity Specialty and Infinity General are wholly-owned subsidiaries of Infinity, whose ultimate parent is Infinity Property & Casualty Corporation [NASDAQ: IPCC]. James River Group, Inc. is a holding company whose ultimate parent is Franklin Holdings (Bermuda), Ltd. James River Group, Inc.'s insurance affiliates are JRG Reinsurance Company, Ltd., James River Insurance Company, Stonewood Insurance Company and James River Casualty Company.
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.