Best’s News & Research Service - February 19, 2015 08:34 AM (EST)
A.M. Best Downgrades Ratings of Safeway Property Insurance Company; Places Ratings Under Review with Negative Implications
Oldwick //BestWire// - A.M. Best has downgraded the financial strength rating to B from B+ and the issuer credit rating to "bb+" from "bbb-" of Safeway Property Insurance Company (Safeway Property) (Westmont, IL). The outlook for both ratings has been placed under review with negative implications.
The downgrade reflects the removal of the rating enhancement that was afforded based on the support provided by Safeway Financial Holding Company. The rating actions follow the recent announcement that Florida Specialty Holdings has entered into an agreement to acquire 100% of the stock in Safeway Property. The company will then be re-branded as Florida Specialty Insurance Company. The ratings will remain under review pending the completion of the transaction, which is subject to approval by the Illinois Department of Insurance and expected to close in the first half of 2015.
The under review status reflects the uncertainty of the newly re-branded company and its future direction.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Catastrophe Analysis in A.M. Best Ratings
- Risk Management and the Rating Process for Insurance Companies
- Understanding BCAR for Property/Casualty Insurers
- Rating Members of Insurance Groups
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 visit A.M. Best's Ratings & Criteria Center.
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