CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 18, 2016 03:46 PM (EDT)
A.M. Best has placed under review with positive implications the financial strength rating of A- (Excellent) and the issuer credit ratings of “a-” of Maxum Indemnity Company and its wholly owned subsidiary, Maxum Casualty Insurance Company, which participate in an intercompany reinsurance pooling agreement, collectively referred to as Maxum Specialty Insurance Group (Maxum) (headquartered in Alpharetta, GA).
The under review status reflects the recent announcement of the definitive agreement entered into between Hartford Fire Insurance Company (The Hartford) and Northern Homelands Company, the holding company of Maxum, under which The Hartford will acquire Northern Homelands Company and its subsidiary for approximately $170 million in cash. For Maxum, the acquisition enables the company to better compete in the excess and surplus lines market and provides a strong platform for future product innovation. Moreover, the under review status acknowledges the potential upside of the combined organization, including its diversified product offering, increased scale and business profile. A.M. Best expects no major changes in Maxum’s brand, strategy or existing operations as a result of its acquisition.
The ratings will remain under review until the transaction has closed and A.M. Best has completed its evaluation of the merged entity.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.