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FOR IMMEDIATE RELEASE
OLDWICK - MAY 13, 2014 03:29 PM (EDT)
A.M. Best has placed under review with positive implications the financial strength rating of B++ (Good) and issuer credit rating of "bbb" of Consumers Insurance USA, Inc. (Consumers) (Murfreesboro, TN). The under review status follows the announcement that Consumers has signed a definitive agreement to be acquired by Motorists Mutual Insurance Company (Motorists) (Columbus, OH).
The positive implications reflect the expected benefits Consumers will receive from becoming part of a larger and stronger organization with access to additional financial and managerial resources. The closing of the transaction requires the approval of the Tennessee and Ohio regulators as well as Consumers Insurance Group, Inc. (ultimate parent of Consumers) shareholders. However, the ratings for Consumers may be downgraded in the event that the transaction does not close due to its weakened capital position and unfavorable earnings performance in recent years.
The ratings will remain under review pending the closing of the transaction and completion of A.M. Best's further analysis.
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. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.