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FOR IMMEDIATE RELEASE
OLDWICK - MAY 11, 2015 03:59 PM (EDT)
A.M. Best has commented that the financial strength rating of A (Excellent) and the issuer credit rating of "a" for Heritage Indemnity Company (HICO) (headquartered in Lakewood, CO) remain unchanged following the recent announcement of its agreement with AmTrust Financial Services, Inc. (AmTrust) (headquartered in New York, NY).
AmTrust has entered into a definitive agreement to acquire Warranty Solutions, a Wells Fargo business [NYSE: WFC] for $152 million in cash. Warranty Solutions, which includes HICO, designs and markets, administers and underwrites vehicle service contracts for new and used automobiles through a national network of independent agents and franchised and independent dealers. Pending regulatory approval, the parties anticipate the closing will occur in the third quarter of 2015. The ratings for Heritage Indemnity reflect the company's solid risk-adjusted capitalization, consistently favorable results and geographic diversification.
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 .
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.