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FOR IMMEDIATE RELEASE
OLDWICK - MAY 13, 2016 02:30 PM (EDT)
A.M. Best has removed from under review with positive implications and upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to “a” from “a-” of Republic Underwriters Insurance Company (RUIC) (Dallas, TX) and its subsidiaries and controlled affiliates (collectively referred to as Republic). The outlook assigned to each rating is stable. See below for a complete list of companies.
The rating upgrades follow the acquisition of the companies by AmTrust Financial Services, Inc. (AmTrust) [NASDAQ:AFSI] and the subsequent approval and execution of a quota share reinsurance agreement between RUIC and AmTrust International Insurance, Ltd. The rating actions also reflect the financial flexibility and other synergies and implicit benefits Republic will derive from the AmTrust enterprise. A.M. Best anticipates that the reinsurance and other expense efficiencies Republic will gain as it is integrated into AmTrust’s operations over the next 12 to 36 months will bring underwriting and operating results more in-line with those of its peers.
The FSR has been upgraded to A (Excellent) from A- (Excellent) and the ICRs upgraded to “a” from “a-” with each rating assigned a stable outlook for Republic Underwriters Insurance Company and its following reinsured subsidiaries and affiliates:
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 see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.