A.M. Best Places Ratings of Ocean Harbor Insurance Group Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with negative implications the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” of Ocean Harbor Insurance Group (OHIG) (headquartered in New York, NY), whose leading operating company is Ocean Harbor Casualty Insurance Company (OHCIC)(Tallahassee, FL).

<p> The rating actions follow the signing of a definitive merger agreement whereby OHIG’s parent, RM Ocean Harbor Holding, Inc. (RMOHHI) will acquire all of the outstanding shares of GNW Acquisition, Corp (GNWAC).

Under the terms of the agreement, RMOHHI will pay $11.4 million in cash for GNWAC.

The under review status of OHIG reflects the potential decline in its risk-adjusted capitalization, increased debt and the challenge for management to successfully integrate the underwriting operations, personnel and systems of GNWAC’s insurance operation into OHIG.

OHIG’s ratings will remain under review pending regulatory approvals, closing of the transaction and A.M. Best’s further discussions with management.

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, 908-439-2200, ext. 5401
Senior Financial Analyst
[email protected]
or
Rick Decker, 908-439-2200, ext. 5423
Assistant Vice President
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.