CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - NOVEMBER 04, 2011 12:00 AM (EDT)
A.M. Best Co. has placed under review with positive implications the financial strength rating (FSR) of C++ (Marginal) and issuer credit rating (ICR) of "b" of Partners Mutual Insurance Company (Partners) (Waukesha, WI), following the recent announcement by Pennsylvania National Mutual Casualty Insurance Company (Penn National) (Harrisburg, PA) that it has executed a definitive agreement to affiliate with Partners.
Subsequent to the planned affiliation, Partners is expected to be added into Penn National's current pooling agreement and become a member of the pool, effective January 1, 2012. Currently, Penn National and its members have an FSR of A- (Excellent) and ICRs of "a-" with a stable outlook.
The transaction is expected to close by year-end 2011, pending customary closing conditions and approval by regulatory authorities. Partners' ratings will be removed from under review following the addition of the company to Penn National's pool and A.M. Best's discussions with management.
Partners, a regional property/casualty insurance company, will continue to operate as a separate entity writing commercial and personal lines in Wisconsin, Michigan and Iowa. Partners will be joining a larger, more diversified insurance group, which will result in greater economies of scale and product enhancements for the company.
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 for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; "Catastrophe Analysis in A.M. Best Ratings"; "Natural Catastrophe Stress Test Methodology"; "Rating Members of Insurance Groups"; and "Catastrophe Risk Management Incorporated Within the Rating Analysis." Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.