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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 27, 2014 04:02 PM (EDT)
A.M. Best has placed under review with negative implications the financial strength ratings of A (Excellent) and the issuer credit ratings of "a" of AmFed National Insurance Company and AmFed Casualty Insurance Company (AmFed Companies) (both domiciled in Ridgeland, MS), Both companies are subsidiaries of Companion Property and Casualty Insurance Company (Companion) (Columbia, SC), which is directly owned by Blue Cross and Blue Shield of South Carolina (BCBSSC) (Columbia, SC).
These rating actions follow the disclosure that Companion has entered into a purchase agreement for the sale of all of the issued and outstanding equity of the AmFed Companies to AmFed Holding Company, LLC. The companies have been placed under review with negative implications due to the fact that once the sale is complete, the AmFed companies will no longer be members of the Companion pooling agreement and will no longer benefit from the significant financial and reinsurance support provided by BCBSSC.
The ratings will remain under review until the transaction is closed.
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.