A.M. Best Comments on North Pointe Holdings Corporation's Announced Acquisition of Capital City Holdings Company, Inc.OLDWICK, N.J. -- A.M. Best Co. has commented that the issuer credit rating (ICR) of "bb+" of North Pointe Holdings Corporation (NPHC NPHC National Pan Hellenic Council NPHC North Phoenix Heart Center ) [NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : NPTE NPTE National Parliamentary Tournament of Excellence NPTE National Physical Therapy Examination (Federation of State Boards of Physical Therapy) ] will remain unchanged as a result of the announcement that NPHC has entered into a definitive purchase agreement to acquire Capital City Holding Company, Inc. Additionally, the financial strength rating (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. ) of A- (Excellent) and ICR of "a- " of North Pointe Insurance Company (NPIC NPIC National Pesticide Information Center (formerly NPTN) NPIC National Passport Information Center NPIC National Photographic Interpretation Center NPIC National Photographic Intelligence Center ) (Southfield, MI) and the FSR of B+ (Good) and ICRs of "bbb-" of NPIC's sister companies, North Pointe Casualty Insurance Company (NPCIC) (Jacksonville, FL) and Home Pointe Insurance Company (HPIC HPIC High Performance Ion Chromatography HPIC High-Pressure Ion Chamber HPIC Health Physics Instrumentation Committee (US Department of Energy) HPIC Hard Parallel Interference Cancellation ) (Coral Gables, FL) remain unchanged as well. The outlook for all ratings remains stable. The announced purchase includes Capital City Insurance Company (Capital City) and certain of its affiliates including agency, loss control and premium audit operations. The deal provides NPHC with geographic and product line diversification considering Capital City's mature, niche book of specialty commercial business in the forestry and logging markets, predominantly covering the workers' compensation line of business. The financing of the acquisition contemplates NPHC securing additional bank debt. As such, NPHC's financial leverage will increase but will remain at a manageable level. For 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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