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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 29, 2010 12:00 AM (EDT)
A.M. Best Co. has commented that the financial strength rating of A (Excellent) and issuer credit rating of "a" of Nevada General Insurance Company (NGIC) (Las Vegas, NV) are unchanged following the announcement of Mutual of Enumclaw Insurance Company's (MOE) (Enumclaw, WA) signing of a definitive agreement to purchase 100% of the stock of Chicago-Vegas Holdings Limited Partnership (CVHLP), which owns 100% of the stock of NGIC.
The sale has been approved by the Board of Directors of CVHLP and the Board of Trustees of MOE and is subject only to the approval of regulatory authorities. A final closing of the sale is expected prior to year end.
NGIC is a non-standard personal automobile writer in Nevada, New Mexico and Arizona and will become a wholly-owned subsidiary of MOE. As such, it is anticipated that the management of NGIC will continue to operate the company as it has in the past and maintain its trend of favorable operating profitability and strong risk-adjusted capitalization. Accordingly, A.M. Best does not anticipate any revision in the ratings as a result of this transaction.
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" and "Understanding BCAR for Property/Casualty Insurers." Methodologies can be found at www.ambest.com/ratings/methodology.
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.