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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 07, 2007 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" for the Argonaut Insurance Group (Argonaut Insurance) (San Antonio, TX). A.M. Best has also affirmed the ICR of "bbb" of Argonaut Group Incorporated (Argonaut Group) (San Antonio, TX) [NASDAQ: AGII]. The outlook for these ratings is stable.
In addition, A.M. Best has affirmed the FSRs of A (Excellent) and the ICRs of "a" for Colony Insurance Group (Colony) (Richmond, VA) and Rockwood Casualty Group (Rockwood Casualty) (Rockwood, PA). A.M. Best has also affirmed the FSR of A- (Excellent) and the ICR of "a-" for Argonaut Great Central Insurance Company (AGC) (Peoria, IL). All the above are subsidiaries of Argonaut Group. The outlook for these ratings is stable.
Concurrently, A.M. Best has affirmed the ratings of "bbb" on senior debt, "bbb-"on subordinated debt and "bb+" on preferred stock of Argonaut Group's universal shelf registration. Under the terms of the shelf, Argonaut Group may issue an indeterminate number of senior debt securities, subordinated debt securities, preferred stock, common stock, warrants and units. The outlook for these ratings is stable. (See link below for a detailed list of ratings.)
The affirmation of the ratings reflects the group's improved capitalization, strong operating performance of its continuing business segments and favorable market position as a national specialty underwriter with strong relationships with its primary distribution force. The insurance company ratings also reflect the financial strength and flexibility of the publicly traded parent holding company, Argonaut Group, Inc.
These rating actions take into consideration the announcement made on March 14, 2007 of the definitive agreement to merge Argonaut Group, Inc. and PXRE Group Ltd. The transaction is expected to close in third quarter 2007, pending shareholder and regulatory approvals.
For a complete list of Argonaut Insurance Group's FSRs, ICRs and debt ratings, please visit Argonaut.
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.