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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - NOVEMBER 08, 2010 12:00 AM (EST)
A.M. Best Co. has revised the status of under review with developing implications to under review with positive implications and affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Casco Indemnity Company (Casco) (Saco, ME).
The rating actions follow the announcement that Casco and Ohio Mutual Insurance Company (Bucyrus, OH) have entered into a stock purchase agreement to acquire N.E. Corporation and its wholly-owned subsidiary, Casco. The under review status with positive implications reflects the perceived benefit to Casco of being ultimately owned by Ohio Mutual Insurance Company, which offers Casco greater financial flexibility and resources.
A.M. Best plans to resolve the under review status upon the completion of the transaction, which is expected to be completed by year-end 2010.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process" and "Rating Members of Insurance Groups." Methodologies can be found at www.ambest.com/ratings/methodology.
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.