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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 16, 2013 12:00 AM (EDT)
A.M. Best Co. has placed under review with positive implications the financial strength rating of B+ (Good) and issuer credit rating of “bbb-“ of German Mutual Insurance Company (German Mutual) (Napoleon, OH).
The under review status follows the announcement that German Mutual’s board has approved an affiliation with Goodville Mutual Casualty Company (New Holland, PA). The positive implications reflect the expected benefits German Mutual will receive from being part of a larger organization, which is expected to provide reinsurance support, access to operational and managerial resources as well as greater risk management and diversification. Specifically, German Mutual will benefit from improved underwriting leverage derived from the reinsurance pooling agreement between the two companies.
The affiliation is subject to approval in the third quarter of 2013 from the Ohio and Pennsylvania Departments of Insurance. German Mutual’s ratings will be removed from under review following the completion of the transaction.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.