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A.M. Best Comments on Munich Reinsurance Company's Acquisition of The Hartford Steam Boiler Group


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FOR IMMEDIATE RELEASE

OLDWICK, N.J. - APRIL 01, 2009 12:00 AM (EDT)
A.M. Best Co. has commented that the ratings of The Hartford Steam Boiler Group (Hartford, CT) and its members (together, known as HSB Group) remain under review with positive implications, pending completion of the review of the acquisition of HSB Group, Inc. by Munich Reinsurance Company (Munich Re) (Munich, Germany). (See below for a detail listing of the companies.)

This comment follows the announcement of the regulatory approval and closing of the acquisition of HSB Group, Inc. and its operating subsidiaries by Munich Re. A.M. Best expects to complete its review very shortly.

On December 22, 2008, A.M. Best placed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of HSB Group under review with positive implications, following the announcement that it will be acquired by Munich Re. The positive implications reflect A.M. Best's view that the acquisition by Munich Re will likely have a favorable outcome relative to HSB Group's ratings.

The FSR of A (Excellent) and ICRs of "a" remain under review with positive implications for The Hartford Steam Boiler Group and its following members:

- The Hartford Steam Boiler Inspection and Insurance Company

- The Boiler Inspection and Insurance Company of Canada

- The Hartford Steam Boiler Inspection and Insurance Company of Connecticut

- HSB Engineering Insurance Limited


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The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at Best's Credit Rating Methodology.

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