CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 20, 2013 12:00 AM (EDT)
A.M. Best Co. has placed under review with positive implications the financial strength rating of A- (Excellent) and issuer credit ratings of “a-” of Developers Surety and Indemnity Company (Developers) (West Des Moines, IA) and its wholly owned subsidiary, Indemnity Company of California (Indemnity) (Irvine, CA).
The rating action for both companies follows the announcement of a definitive agreement under which Developers’ immediate parent, Insco Insurance Services, Inc., will sell all of its outstanding shares to AmTrust Financial Services, Inc. (AmTrust) (headquartered in New York, NY) [NASDAQ: AFSI].
The under review with positive implications status reflects the potential benefits Developers and Indemnity are expected to derive as part of the AmTrust organization, with access to additional financial and managerial resources.
The transaction is expected to close during the next six months, pending regulatory approval. The ratings will remain under review until the transaction closes and A.M. Best’s analysis is completed.
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.