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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 11, 2007 12:00 AM (EDT)
A.M. Best Co. has placed the financial strength rating (FSR) of B++ (Good) and the issuer credit rating (ICR) of "bbb" of American Agri-Business Insurance Company (AA-BIC) (Lubbock, TX) under review with positive implications. These rating actions are the result of the announcement that AA-BIC's privately held parent, ARMtech Insurance Service, Inc. (ARMtech) and one of Endurance Specialty Holdings, Ltd.'s (Endurance) (Bermuda) [NYSE:ENH] U.S. based holding companies' has entered into an agreement to acquire 100% of ARMtech. AA-BIC holds a standard reinsurance agreement (SRA) with the Federal Crop Insurance Corp. (FCIC) and is licensed to underwrite crop insurance in 34 states.
A.M. Best anticipates that the acquisition will provide ARMtech the financial flexibility necessary to continue to grow its multiple peril crop insurance (MPCI) business, which is a federally sponsored farm program designed to protect farmers from a variety of perils. This anticipated flexibility should also provide AA-BIC with the option of retaining a greater portion of its substantial gross premium writings in the future.
Endurance's FSR and ICRs remain unchanged following the announcement of the planned acquisition.
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.