A.M. Best Comments on the Ratings of American Independent Companies and Its Members

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has commented that the financial strength rating of B+ (Good) and issuer credit ratings of “bbb-” of American Independent Companies (AIC) (headquartered in Conshohocken, PA) and its pool members are unchanged, following the signing of a definitive agreement between Omni Insurance Company (OMNI) (Atlanta, GA), a rating unit within AIC and American General Holdings, Inc.(AGHI).

According to the purchase agreement, OMNI will acquire 100% of the stock of American General Holdings Group’s members, Apollo Casualty Company, Delphi Casualty Company and Apollo Casualty Company of Florida from their sole stockholder, AGHI.

AIC operates under an inter-company pooling agreement that currently includes five member companies. The risk-adjusted capitalization of AIC is expected to remain supportive of its ratings following the close of the acquisition, which is expected by the end of the second quarter of 2011.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; and “A.M. Best’s Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Kevin Dorsey
Senior Financial Analyst<br />(908) 439-2200, ext. 5401
[email protected]
or
Rick Decker
Assistant Vice President
(908) 439-2200, ext. 5423
[email protected]
or
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
[email protected]
or
Jim Peavy
Assistant Vice President, Public Relations
908) 439-2200, ext. 5644
[email protected]

Source: A.M. Best Co.