A.M. Best Places Ratings of Great Northwest Insurance Company and Hawaiian Insurance and Guaranty Company, Limited Under Review

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with developing implications the financial strength rating (FSR) of B (Fair) and issuer credit rating (ICR) of “bb+” of Great Northwest Insurance Company(GNIC).

In addition, A.M. Best has placed under review with negative implications the FSR of B+ (Good) and ICR of “bbb-” ofHawaiian Insurance and Guaranty Company, Limited (HIG) (Honolulu, HI). Both entities are owned by the GNW Acquisition Corp (GNWAC), and all companies are headquartered in St. Paul, MN, unless otherwise specified.

The rating actions follow the signing of a definitive merger agreement whereby all of the outstanding shares of GNWAC will be acquired by RM Ocean Harbor Holding, Inc. (RMOHHI) for $11.4 million in cash.

GNIC’s under review with developing implications status reflects uncertainty of the impact of the acquisition upon GNIC’s ratings. HIG’s under review with negative implications status reflects the possible effects to its ratings as it is integrated with the insurance entities, which comprise the Ocean Harbor Insurance Group (OHIG), which are subsidiaries of RMOHHI. The ratings will remain under review pending further discussions with the managements of GNWAC and OHIG, as well as the conclusion of the agreement.

GNWAC’s ICR of “b” is unaffected by the pending merger.

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.Joel Silverthorn, 908-439-2200, ext. 5120
Senior Financial Analyst
[email protected]
orRachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
orJeffrey Mango, CPA, 908-439-2200, ext. 5204
Assistant Vice President
[email protected]
orJim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.