CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 03, 2007 12:00 AM (EST)
A.M. Best Co. has placed the financial strength rating (FSR) of B++ (Good) of Sheboygan Falls Mutual Insurance Company (Wisconsin) under review with positive implications.
This action has been taken due to the announced strategic affiliation of Sheboygan Falls Mutual with Donegal Mutual Insurance Company (Donegal Mutual). As part of the affiliation, Donegal Mutual will make a contribution note investment of $3.5 million in Sheboygan Falls Mutual. At September 30, 2006, Sheboygan Falls Mutual's surplus was $6.4 million.
The Donegal Mutual Insurance Company is one of two pooled entities of the Donegal Insurance Group (Pennsylvania) which has an FSR of A (Excellent) and an issuer credit rating (ICR) of "a". At September 30, 2006, the group's policyholders' surplus was $264.3 million.
The rating of Sheboygan Falls will remain under review pending close of the transaction and regulatory approval.
Sheboygan Falls is a multiple lines insurer writing personal and commercial lines in the state of Wisconsin.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.