Best’s News & Research Service - May 17, 2017 10:53 AM (EDT)
A.M. Best Upgrades Credit Ratings of Commercial Travelers Insurance Company
- May 17, 2017 10:53 AM (EDT)
Oldwick //BestWire// - A.M. Best has upgraded the Financial Strength Rating to A- (Excellent) from B+ (Good) and the Long-Term Issuer Credit Rating to “a-” from “bbb-” of Commercial Travelers Insurance Company (Commercial Travelers) (Utica, NY). The outlooks of these Credit Ratings (ratings) have been revised to stable from positive.
The rating upgrades reflect the recent demutualization of Commercial Travelers (formerly Commercial Travelers Mutual Insurance Company) and its subsequent acquisition by National Guardian Life Insurance Company (NGL). The rating upgrades also reflect Commercial Travelers’ high level of integration with NGL, including an ongoing intercompany reinsurance agreement, common management and a variety of shared resources. NGL’s acquisition has also provided it with additional capital as a result of the purchase of Commercial Travelers’ common stock, and the quality of capital has been enhanced by the repayment of a $5 million surplus note previously issued by Commercial Travelers to NGL. Going forward, Commercial Travelers will serve as the New York marketing arm of NGL and its subsidiaries.
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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