JANUARY 24, 2013 12:00 AM (EST)
A.M. Best Withdraws Ratings of Select Members of State Auto Insurance Companies
Senior Financial Analyst
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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 24, 2013 12:00 AM (EST)
A.M. Best Co. has withdrawn the financial strength rating of A (Excellent) and issuer credit ratings of a of Farmers Casualty Insurance Company (West Des Moines, IA), State Auto Florida Insurance Company (Indianapolis, IN), Beacon National Insurance Company (Wichita Falls, TX) and Beacon Lloyds Insurance Company (Wichita Falls, TX).
The ratings of State Automobile Mutual Insurance Company (Columbus, OH) and its insurance subsidiaries are unchanged. State Auto Insurance Companies are publicly-traded through their intermediate holding company, State Auto Fin/ancial Corporation (STFC) [NASDAQ: STFC].
The withdrawal of the ratings was due to the transactions of Farmers Casualty Insurance Company being merged into State Auto Property and Casualty Insurance Company (West Des Moines, IA), State Auto Florida Insurance Company and Beacon National Insurance Company being merged into Meridian Security Insurance Company (Indianapolis, IN) and Beacon Lloyds Insurance Company being dissolved. These transactions, which were effective December 31, 2012, are part of STFC managements ongoing initiatives to streamline its operations.
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. Bests Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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