CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 05, 2001 12:00 AM (EDT)
A.M. Best Co. has placed the B+ (Very Good) financial strength rating of Wilson Mutual Insurance Company, Sheboygan, Wis., under review with positive implications. This rating action follows the announcement of a definitive agreement to form a strategic alliance with Motorists Insurance Group, Columbus, Ohio. Under the agreement, Wilson Mutual will become a participant in Motorists Insurance Group's inter-company pool. Furthermore, Motorists Insurance Group will provide Wilson Mutual with a $10 million surplus note and gain majority control of Wilson Mutual's board of directors.
The alliance will provide Wilson Mutual with a better geographic spread of risk, access to additional products and increased financial security. Additionally, both entities will benefit from financial and operational synergies.
Based on the proposed reinsurance pooling agreement, A.M. Best will likely assign Wilson Mutual the current A (Excellent) rating of Motorists Insurance Group upon a detailed review and close of the transaction, which is expected in the fourth quarter of 2001.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.