A.M. Best Downgrades Ratings of American Live Stock Insurance Company; Removes Ratings From Under Review.

OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating (FSR) to A (Excellent) from A+ (Superior) and the issuer credit rating to "a" from "aa-"of American Live Stock Insurance Company (ALS) (Geneva, IL). The ratings have been removed from under review with negative implications and assigned a stable outlook.

These rating actions follow the recent announcement that Hiscox Ltd (Hiscox) (Hamilton, Bermuda) has received regulatory approval completing its acquisition of ALTHOA, Inc., an insurance holding company, and its subsidiaries, ALS and Harding & Harding, Inc., an affiliated insurance agency.

The rating actions reflect the anticipated changes in ALS' business profile due to growth expectations in the company's existing book of business, as well as the new professional indemnity product offerings to be introduced by Hiscox. The downgrades also recognize the challenges and uncertainties emanating from the successful execution of ALS' business plans amid increasingly competitive market conditions. The stable outlook reflects A.M. Best's belief that the company will sustain favorable risk-adjusted capitalization and operating performance, while maintaining moderate underwriting leverage measures.

Hiscox is a specialist insurance group listed on the London Stock Exchange. Hiscox brings considerable expertise to ALS including a strong management team, improved technology platform and greater capital flexibility. The acquisition gives Hiscox the opportunity to expand its existing U.S. operations and product offerings through ALS' admitted status in all 50 states.

ALS' current core business focuses on animal mortality insurance for cattle and horses and is a complementary fit to the bloodstock business written by Hiscox.

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 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. For more information, visit www.ambest.com.