CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JULY 31, 2008 12:00 AM (EDT)
A.M. Best Co. has placed the financial strength rating (FSR) of B+ (Good) and issuer credit rating (ICR) of "bbb-" of First Allmerica Financial Life Insurance Company (FAFLIC) (Worcester, MA) under review with positive implications.
These rating actions follow the announcement that FAFLIC's parent company, The Hanover Insurance Group, Inc. (THG) [NYSE: THG] (Worcester, MA), has entered into a definitive agreement to sell FAFLIC to Commonwealth Annuity and Life Insurance Company (Commonwealth) (Southborough, MA), a subsidiary of the Goldman Sachs Group, Inc. (Goldman Sachs).
As a result of the acquisition, Commonwealth will obtain FAFLIC's New York license, which is expected to add flexibility in structuring Commonwealth's future transactions. In addition, A.M. Best notes the existing relationship between THG and Goldman Sachs as Commonwealth was previously owned by THG.
In the near term, A.M. Best will review the strategic fit of this acquisition—including the future capitalization of FAFLIC—which is expected to close by year-end 2008. The ratings of Commonwealth are unaffected by this transaction.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.