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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 19, 2012 12:00 AM (EDT)
A.M. Best Co. has placed under review with negative implications the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” of PrimeOne Insurance Company (PrimeOne) (Farmington Hills, MI).
The under review status reflects the uncertainty concerning the strategic direction of the company following both the president and chief operating officer no longer being with the company. Daniel G. Gibson, formerly executive vice president and chief financial officer, has assumed the role of president and CEO. Mr. Gibson brings to the role over 30 years of experience in the property/casualty industry.
The rating action also reflects A.M. Best’s uncertainty regarding PrimeOne’s current business plan given the change in leadership and the concern with its ability to execute its business plan successfully. The company’s current ratings acknowledge the considerable challenges and execution risk associated with a start-up company, though it currently has sufficient capital to support business written to date.
A.M. Best anticipates PrimeOne’s ratings will be removed from under review after a credible business plan is submitted for review to help better understand the company’s planned course over the near and longer term. The analysis of the prospective business also will assess the perceived likelihood of the company successfully carving out a business niche as a provider of coverage for commercial risks in its home state of Michigan.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups”. Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.