CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 06, 2007 12:00 AM (EDT)
A.M. Best has commented that the ratings of Accident Fund Group (Accident Fund) (Lansing, MI) and its subsidiaries remain unchanged following the recent announcement that Accident Fund Insurance Company of America will be acquiring CWI Holdings, Inc. and it subsidiaries, which includes CompWest Insurance Company (San Francisco, CA). CompWest is currently rated NR-1 (Insufficient Data) by A.M. Best and is expected to be assigned a financial strength rating (FSR) prior to or in concurrence with the close of this transaction.
Accident Fund and CWI Holdings, Inc. have executed a purchase agreement and are entering the regulatory approval process, with the transaction expected to close later this year. The acquisition of CompWest Insurance Company, a California workers' compensation writer, is part of Accident Fund's ongoing diversification initiatives, both strategically and geographically. The acquisition of CompWest is Accident Fund's second acquisition in two years. As Accident Fund's overall diversification continues, future underwriting results, cash flow and profit margins will become increasingly influenced by the business garnered from these acquisitions. As in the past, A.M. Best will monitor the progress of this integration and intends to initiate ratings coverage of CompWest Insurance Company in the near term.
On January 11, 2007, A.M. Best affirmed the FSR of A (Excellent) of Accident Fund.
Additionally, on August 31, 2007, A.M. Best affirmed the FSR of A- (Excellent) and assigned the ICR of "a-" to Blue Cross Blue Shield of Michigan (BCBSM), the parent company of Accident Fund.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.