OCTOBER 17, 2012 12:00 AM (EDT)
A.M. Best Places Ratings of Pennsylvania General Insurance Company Under Review With Developing Implications
Senior Financial Analyst
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Assistant Vice President
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Senior Manager, Public Relations
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Assistant Vice President, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 17, 2012 12:00 AM (EDT)
A.M. Best Co. has placed under review with developing implications the financial strength rating of A (Excellent) and the issuer credit rating of a of Pennsylvania General Insurance Company (Penn General) (Philadelphia, PA).
The ratings will remain under review until the execution of an approved pooling agreement between Penn General, California Insurance Company (San Francisco, CA), Continental Indemnity Company and Laurier Indemnity Company (both domiciled in Cedar Rapids, IA), collectively referred to as North American Casualty Group (NAC). The pooling agreement is expected to be executed and approved in the fourth quarter of 2012.
Effective October 1, 2012, North American Casualty Company (Omaha, NE) purchased all of the issued and outstanding stock of Penn General from OneBeacon Insurance Group, LLC (OneBeacon). Prior to the sale, most of Penn Generals business was novated to OneBeacon with a small book of business fully reinsured by OneBeacon. As a result, Penn General was sold as a shell with all past business and associated liabilities retained by OneBeacon. NACs ultimate parent is Berkshire Hathaway Inc. [NYSE: BRK-A and BRK-B].
The methodology used in determining these ratings is Bests Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bests 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 and Rating Members of Insurance Groups. Bests Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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