A.M. Best Revises Outlook to Positive for Virginia Surety Company, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Virginia Surety Company, Inc. (Virginia Surety) (Chicago, IL).

The rating actions reflect Virginia Surety's supportive capitalization, profitable underwriting results and management's specialty niche expertise in the extended warranty market. The ratings take into consideration the unlimited guarantee and indemnification provided by National Indemnity Company (Omaha, NE) for the run off of all non-warranty business written prior to the 2006 acquisition of Virginia Surety by its current owner, Onex Corporation [TSX: OCX].

Virginia Surety and its affiliated companies are the largest underwriters of consumer extended warranties worldwide. Underwriting activities principally include coverage for extended warranty programs on automobiles, household appliances, consumer electronics, credit card enhancement programs and nonstructural home warranty.

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 © 2010 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Duncan McColl, CFA, 908-439-2200, ext. 5826
Senior Financial Analyst
[email protected]
or
Joseph Roethel, 908-439-2200, ext. 5630
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.