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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - DECEMBER 28, 2007 12:00 AM (EST)
A.M. Best Co. has placed the financial strength rating of B+ (Good) and the issuer credit rating (ICR) of "bbb-" of Georgia Casualty & Surety Company (Georgia Casualty) (Atlanta, GA) under review with positive implications.
The rating actions reflect the pending acquisition of this company, along with its sister company, Association Casualty Insurance Company (Association Casualty) (Austin, TX), by Columbia Mutual Insurance Company (Columbia Mutual) (Columbia, MO) from Atlantic American Corporation (Atlantic American) (NASDAQ: AAME). The acquisition, which includes Georgia Casualty's existing infrastructure and employees, is expected to close during the first quarter of 2008. The company is expected to benefit from the resources available to it from its new parent, both financially and through expanded product offerings and geographic diversification. The Georgia Casualty acquisition will allow Columbia Mutual to expand and enhance its presence in the Southern United States. As a result, the rating for Georgia Casualty is likely to increase at the time the transaction closes.
The financial strength rating of A- and ICR of "a-" for Association Casualty remains unchanged. However, the current negative outlook for both ratings is likely to change at the time the transaction closes due to the anticipated improvement in Association Casualty's profile and financial flexibility.
The ratings and outlooks for Atlantic American's remaining insurance entities, American Southern Insurance Company (Topeka, KS), American Safety Insurance Company (Atlanta, GA), and Bankers Fidelity Life Insurance Company (Atlanta, GA) remain unchanged.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.