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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JULY 19, 2007 12:00 AM (EDT)
A.M. Best Co. has removed from under review with positive implications and upgraded the financial strength rating (FSR) to A+ (Superior) from B++ (Good) and assigned an issuer credit rating (ICR) of "aa-" to Patriot Insurance Company (Patriot) (Brunswick, ME) following its merger into and 100% reinsurance with Frankenmuth Mutual Insurance Company (Frankenmuth) (Frankenmuth, MI). The outlook assigned to the FSR and ICR is stable. The ratings of Frankenmuth and its affiliates are unchanged.
These rating actions follow Patriot's reorganization and merger into Frankenmuth on July 1, 2007 and the establishment of a 100% quota share reinsurance agreement, wherein Patriot will cede to Frankenmuth 100% of all new and renewal business, as well as the remaining net liabilities from business written prior to the acquisition.
Patriot currently underwrites personal lines business, largely in Maine, as well as in New Hampshire and Vermont. While continuing to write its personal lines business, Patriot will also begin to write commercial lines coverages, tapping into Frankenmuth's underwriting expertise and its systems. Furthermore, Patriot will be utilized as an additional market for Frankenmuth's existing production sources outside of the Northeast.
Frankenmuth is a mutual insurance company that writes both commercial and personal lines. While the majority of Frankenmuth's writings are in Michigan and other midwestern states, in recent years it has expanded its writing to the Southeast.
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 full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.