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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 04, 2013 12:00 AM (EST)
A.M. Best Co. has placed under review with positive implications the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of First Nonprofit Insurance Company (FNIC) (Chicago, IL).
The under review status follows the announcement that FNIC has entered into a definitive agreement under which it will become part of the AmTrust Financial Services, Inc. group. As part of the transaction, FNIC's parent, Mutual Insurers Holding Company will be demutualized and converted into a stock holding company, which will continue to own FNIC. The positive implications reflect the expected benefits to be derived by being part of a much larger organization with access to additional financial and managerial resources.
The transaction is expected to close during the first half of 2013 and is subject to regulatory and policyholder approval.
The principal 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. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.