A.M. Best Withdraws Ratings of Apollo Casualty Company of Florida Due to Novation

A.M. Best Co. has withdrawn the financial strength rating of C++ (Marginal) and issuer credit rating of “b” of Apollo Casualty Company of Florida (Apollo of FL) (headquartered in Des Plaines, IL), due to its business being transferred to Omni Insurance Company (OMNI) (headquartered in Atlanta, GA), a pooled member of the American Independent Companies (Conshohocken, PA).

Apollo of FL’s book of business consists of non-standard automobile policies, which have been novated and transferred to OMNI, another issuer of the same type of policies. Additionally, all outstanding loss and loss adjustment reserves have been ceded to and assumed by OMNI, pursuant to an Assumption and Reinsurance Agreement, recently approved by the Florida Office of Insurance Regulation and the Illinois Department of Insurance.

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 http://www.ambest.com/ratings/methodology.