CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 21, 2007 12:00 AM (EDT)
A.M. Best Co. has commented that the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of "a-" of Rockhill Insurance Company (Rockhill) (Phoenix, AZ) are unchanged following the announcement that Rockhill has signed a definitive agreement to acquire RTW, Inc. (RTW) (Bloomington, MN) [Nasdaq: RTWI].
Under the proposed transaction, RTW will become a wholly owned subsidiary of Rockhill Holding Company. RTW is the parent holding company of American Compensation Insurance Company and Bloomington Compensation Insurance Company, which together form the RTW Group.
In May 2007, A.M. Best affirmed the FSR of B++ (Good) and ICRs of "bbb+" of the rated subsidiaries of RTW Group with a positive outlook. The ratings recognized the group's strong capitalization, focus on integrated absence management and favorable underwriting performance. A.M. Best views this transaction as positive in that it provides Rockhill the ability to deploy its capital and diversify its product offerings away from catastrophe-exposed risks. Management at Rockhill has chosen this strategic direction over seeking rapid growth in its current lines of business in reaction to the rapidly softening surplus lines market. The current ratings and outlook for the RTW Group are expected to remain unchanged at the close of this transaction, which is expected in fourth quarter 2007, subject to stockholder and regulatory approvals.
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.