A.M. Best Comments on Alleghany Corporation's Definitive Agreement to Acquire Employers Direct Corporation.OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength ratings (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ), issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) and debt ratings of Alleghany Corporation (Alleghany) (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY) (NYSE NYSE See: New York Stock Exchange : Y) remain unchanged following Alleghany's announcement that it has entered into a definitive agreement to acquire Employers Direct Corporation (EDC EDC See: Export Development Corp. ), a direct writer of California workers' compensation insurance. EDC is also the parent of Employers Direct Insurance Company (EDIC EDIC Economic Development Information Center EDIC Explain Demonstrate Imitate Critique (military aviation training method) ). The outlook for all ratings is stable. (See below for a detailed listing of companies and ratings.) The transaction is subject to regulatory approval and is expected to close in third quarter 2007. EDIC's current category of NR-2 (Insufficient Size and/or Operating Experience) will be reviewed after A.M. Best has met with Alleghany's management and evaluated the proposed post acquisition capitalization and business plan. The FSRs of A (Excellent) and ICRs of "a" remain unchanged for RSUI RSUI Rescue Swimmer Under Instruction (USMC) Group and its following members: * RSUI Indemnity Company * Landmark American Insurance Company The FSRs of A (Excellent) and the ICRs of "a" remain unchanged for Capitol Insurance Group and its following members: * Capitol Indemnity Corporation * Platte River Insurance Company * Capitol Specialty Insurance Corporation The FSRs of A- (Excellent) and the ICRs of "a-" remain unchanged for Darwin Group and its following members: * Darwin National Assurance Company * Darwin Select Insurance Company The ICR of "bbb" remains unchanged for Alleghany Corporation. The following debt rating remains unchanged: Alleghany Corporation-- -- "bb+" on $290.4 million 5.75% mandatory convertible preferred stock, due 2009 For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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