CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 01, 2013 12:00 AM (EST)
A.M. Best Co. has maintained the under review with negative implications status on the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of a- of the subsidiaries of Meadowbrook Insurance Group, Inc. (MIGI) (Southfield, MI) [NYSE: MIG], which operate under an intercompany reinsurance pooling agreement. A.M. Best also has maintained the under review with negative implications status on the ICR of bbb- of MIGI. (See below for a detailed listing of the companies and ratings.)
Maintenance of the under review status is in follow up to the rating actions taken by A.M. Best on October 19, 2012 and is in response to some of the remedial actions taken by MIGI since its third quarter earnings announcement and reserve charge. Among the actions taken by management since that time include capital enhancements through the monetization of investments, quota share reinsurance (surplus relief) and the termination of certain underperforming books of business. Other factors A.M. Best has considered since that time include managements guidance in 2013 and its expectation to restore profitability and capital via retained earnings.
The ratings will remain under review as A.M. Best continues to evaluate MIGIs corrective actions.
The FSR of A- (Excellent) and ICRs of a- remain under review with negative implications for the following Meadowbrook Insurance Group, Inc. subsidiaries:
· Star Insurance Company
· Century Surety Company
· Savers Property and Casualty Insurance Company
· ProCentury Insurance Company
· Williamsburg National Insurance Company
· Ameritrust Insurance Corporation
The methodology used in determining these ratings is Bests Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bests rating process and contains the different rating criteria employed in the rating process. Bests Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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