A.M. Best Places Ratings of Worldwide Insurance Company and Worldwide Direct Auto Insurance Company Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 29, 2003 A.M. Best Co. has placed the financial strength ratings of A (Excellent) of Worldwide Direct Auto Insurance Company and Worldwide Insurance Company (both located in Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. ) under review with negative implications. These rating actions reflect the January January: see month. 27, 2003, announcement that Response Insurance Group of Companies (Meriden Meriden (mĕr`ĭdən), city (1990 pop. 59,479), New Haven co., S central Conn.; settled 1661, inc. as a town 1806, as a city 1867, town and city consolidated 1922. Silverware and pewter were made there in the 18th cent. , CT), a subsidiary of Direct Response Corp, had signed a stock purchase agreement to acquire Worldwide Insurance and Worldwide Direct Auto from Great American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Insurance Company (Cincinnati), the insurance subsidiary of American Financial Group, Inc. (AFG AFG Afghanistan (international vehicle registration) AFG American Financial Group AFG Assistance to Firefighters Grant AFG Arbeitsförderungsgesetz (German: Labor Advancement Law) AFG Accreditation for Growth ), for an amount equal to the policyholders' surplus of the Worldwide companies plus $17 million. The transaction will require the filing of a "Form A" application and approval from the Ohio Department of Insurance. The acquisition of Worldwide Direct Auto is being conducted through Warner Insurance Company (Meriden, CT), a subsidiary of Direct Response Corp. In addition, Response will acquire Great American's right to renew certain of its personal automobile insurance business written on a direct basis in selected markets. Response will pay commissions to Great American based on the successful renewal into Response of the Great American policies written on a direct basis. AFG does not expect to report a significant gain or loss on the sale. The negative implications reflect the likely downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. or withdrawal of Worldwide Insurance and Worldwide Direct Auto's current ratings, due to future uncertainties with regard to business persistency, operational changes and their role in the Response Insurance Group. The ratings will remain under review pending receipt of the necessary regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, meeting with the new management and the close of the transaction, which is expected in the second quarter of 2003. The current financial strength ratings of Great American Insurance Company and Warner Insurance Company, A (Excellent) and B++ (Very Good), respectively, remain unaffected by this transaction. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion