A.M. Best Withdraws Ratings of B&B Insurance Co., OJSI

<p><location value="LU/gb.eng.london" idsrc="xmltag.org">LONDON</location>--(BUSINESS WIRE)-- <b>A.M. Best <location value="LR/eur" idsrc="xmltag.org">Europe</location> – <org>Rating Services Limited</org></b> has downgraded the financial strength rating to C- (Weak) from C (Weak) and issuer credit rating (ICR) to “cc” from “ccc+” of <b><org>B&B Insurance Co.</org>, OJSI </b>(B&B) (<location value="LC/by" idsrc="xmltag.org">Belarus</location>). Both ratings have been removed from under review with developing implications and assigned a negative outlook. </p><p> Concurrently, A.M. Best has withdrawn the ratings at the company’s request to no longer participate in A.M. Best’s interactive rating process. </p><p> The downgrades and negative outlook on the ratings of B&B reflect the absence of sufficient information to assess the company. As a result, significant uncertainty exists as to the strength of B&B’s risk-adjusted capitalisation, which has been maintained at a consistently weak level and subject to considerable volatility, in view of the significant growth and poor underwriting performance of the company over the last few years. In addition, the Belarusian economy has experienced significant deterioration over the year, increasing the potential for further weakening in B&B’s risk-adjusted capitalisation. </p><p> Following the announcement of AXA Central & <location value="LB/eeur" idsrc="xmltag.org">Eastern Europe</location>, a subsidiary of the French-based insurance and financial services provider, <b>AXA S.A.</b>, of its intention to acquire 80% of B&B, A.M. Best has been unable to assess any potential benefits to B&B. </p><p> The principal methodology used in determining these ratings is <a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2Fratings%2Fmethodology%2Fbcrm.pdf&esheet=6866175&lan=en-US&anchor=Best%27s+Credit+Rating+Methodology+--+Global+Life+and+Non-Life+Insurance+Edition&index=1&md5=642a178afa2ef30cb8eaf57f45adc50d">Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition</a><span class="bwuline">,</span> which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies” and “Understanding BCAR for Property/Casualty Insurers”. Methodologies can be found at <a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2Fratings%2Fmethodology&esheet=6866175&lan=en-US&anchor=www.ambest.com%2Fratings%2Fmethodology&index=2&md5=23ea05550f2490291068c4fed0d776fb">www.ambest.com/ratings/methodology</a>. </p><p><b>In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: </b><a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww3.ambest.com%2Femea%2Fambersdisclosure.pdf&esheet=6866175&lan=en-US&anchor=A.M.+Best+Europe+-+Rating+Services+Limited+Supplementary+Disclosure&index=3&md5=05710ca768d407143fa67cbf7d1b8a6a"><b>A.M. Best <location value="LR/eur" idsrc="xmltag.org">Europe</location> - Rating Services Limited Supplementary Disclosure</b></a><b>.</b></p><p><b>A.M. Best <location value="LR/eur" idsrc="xmltag.org">Europe</location> – <org>Rating Services Limited</org> is a subsidiary of A.M. Best Company.</b><b>Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit </b><a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2F&esheet=6866175&lan=en-US&anchor=www.ambest.com&index=4&md5=1242b8f06e6907dd3c8f9f9a456cc09e">www.ambest.com</a>. </p><p class="bwalignc"><b>Copyright © 2011 by A.M. Best Company, Inc.</b><b>ALL RIGHTS RESERVED.</b></p><p class="bwalignc"></p><p><img alt="" src="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20110919006134r1&sid=acqr4&distro=nx" /><span class="bwct31415" /></p><p><b><org>A.M. Best Co.</org><br /><person>Deniese Imoukhuede</person><br />+(44) 207 397 0277<br />Senior Financial Analyst<br /></b><a href="mailto:[email protected]"><b>[email protected]</b></a><br />or<br />Carlos Wong-Fupuy<br />+(44) 20 7397 0287<br />Senior Director, Analytics<br /><a href="mailto:[email protected]"><b>[email protected]</b></a><br /><b>or<br /><person>Carole Lovell</person><br />+(1) 908 439 2200, ext. 5445<br />Public Relations Associate<br /></b><a href="mailto:[email protected]"><b>[email protected]</b></a><br />or<br /><person>Jim Peavy</person><br />+(1) 908 439 2200, ext. 5644<br />Assistant Vice President, Public Relations<br /><a href="mailto:[email protected]"><b>[email protected]</b></a></p><p></p><p>Source: <org>A.M. Best Co.</org></p>