A.M. Best Places Ratings of the Royal & SunAlliance USA under Review with Developing Implications.OLDWICK, N.J. -- A.M. Best Co. has placed 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. ) of C++ (Marginal) and the 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. ) of "b" of the Royal & SunAlliance USA Insurance Pool (R&SAUS SAUS Sindacato Antiusura (Italian) SAUS Under Secretary of the Army SAUS Special Assistant to the Undersecretary of State ) and Royal Surplus Lines Insurance Company (RSLIC RSLIC Reliance Standard Life Insurance Company (also seen as RSLI) ) under review with developing implications pending the completion of the proposed sale of these operations to Arrowpoint Capital, a new company formed by the existing management team of these operations. All the above companies are domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. in Wilmington, DE. R&SAUS and RSLIC are U.S. subsidiaries of Royal & Sun Alliance Insurance Group plc (R&SA) (London, England). (See below for a detailed list of the ratings.) As part of this transaction, R&SA will infuse in·fuse v. 1. To steep or soak without boiling in order to extract soluble elements or active principles. 2. To introduce a solution into the body through a vein for therapeutic purposes. $287.5 million into its U.S. subsidiaries to facilitate the ongoing run-off of R&SAUS and RSLIC's existing liabilities. Subsequently, Arrowpoint Capital is purchasing R&SAUS and RSLIC for $300 million in deferred consideration, which will be based on the future performance of the run-off of the liabilities being transferred in the sale. R&SAUS and RSLIC ceased writing new business in 2003 and have been in run-off since then. A.M. Best will review the impact of this transaction on the U.S. subsidiaries' risk-adjusted capitalization as well as management's operational plans for the newly formed company. A.M. Best anticipates finalizing its review following the completion of the sale to Arrowpoint Capital and discussions with management, which are expected by year-end 2006. The FSR of C++ (Marginal) and the ICRs of "b" have placed under review with developing implications for Royal & SunAlliance USA Insurance Pool and its following members: * Royal Indemnity Company * Security Insurance Company of Hartford * Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. National Insurance Company The FSR of C++ (Marginal) and the ICR of "b" have placed under review with developing implications for Royal Surplus Lines Insurance Company. For Best's Ratings 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. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc. 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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