A.M. Best's Rating on Capitol Transamerica Remains Unchanged.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 27, 2001 At this time, A.M. Best Co.'s A+ (Superior) financial strength rating for Capitol Capitol, seat of the U.S. Congress Capitol, seat of the U.S. government at Washington, D.C. It is the city's dominating monument, built on an elevated site that was chosen by George Washington in consultation with Major Pierre L'Enfant. Transamerica Group, Madison, Wisconsin Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison. The 2006 population estimate of Madison was 223,389, making it the second largest city in Wisconsin, after Milwaukee, and , remains unchanged following the July July: see month. 20, 2001 announcement that Capitol Transamerica has entered into a definitive agreement with Alleghany Corporation, whereby Alleghany will acquire Capitol Transamerica at a price of $16.50 per share in cash. A.M. Best is reviewing the rating and expects to meet with the principals of this transaction to review the potential implications of this merger on the company's operations and already strong capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. . This review, along with Capitol Transamerica's most recent unfavorable operating experience, will dictate TO DICTATE. To pronounce word for word what is destined to be at the same time written by another. Merlin Rep. mot Suggestion, p. 5 00; Toull. Dr. Civ. Fr. liv. 3, t. 2, c. 5, n. 410. any rating action. As stated in the last two public rating rationales--most recently in May 2000--the potential remains for a future negative rating action. However, A.M. Best's rating Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. will be updated following a full review of the company's capitalization, operating performance and business profile. A.M. Best expects to meet with management again shortly to review its current business plan, the details of the transaction and the strategic role Capitol Transamerica will play as a member of Alleghany. Thereafter, A.M. Best expects to render a rating opinion. The transaction is valued at approximately $182 million and has been approved by both Boards of Directors, subject to closing conditions. This includes the approval of holders of two-thirds of Capitol Transamerica's outstanding shares of common stock and certain regulatory approvals. Both companies expect a closing by the end of the year. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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