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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 21, 2016 01:43 PM (EDT)
A.M. Best has removed from under review with positive implications and upgraded the financial strength rating (FSR) to A (Excellent) from B- (Fair) and the issuer credit rating (ICR) to “a” from “bb-” of Springfield Insurance Company (Springfield) (Covina, CA). The outlook assigned to each rating is stable. At the same time, A.M. Best has affirmed the FSR of A (Excellent) and the ICR of “a” of Heritage Indemnity Company (Heritage) (Irvine, CA). The outlook for each rating is stable.
The rating actions follow the acquisition of Springfield and Heritage by AmTrust Financial Services, Inc. (AmTrust) [NASDAQ:AFSI] and the subsequent approval and execution of separate quota share reinsurance agreements between Springfield, Heritage and AmTrust International Insurance, Ltd. Implementation of the quota share reinsurance agreements should strengthen risk-adjusted capitalization at Springfield and Heritage.
The rating actions also reflect the financial flexibility and other implicit benefits that Springfield and Heritage will derive from the AmTrust enterprise. A.M. Best anticipates that the underwriting and operating efficiencies to be gained as Springfield and Heritage are integrated into AmTrust’s operations over the intermediate term will bring their results into line with those of their peers.
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 see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.