| [February 14, 2012] |
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A.M. Best Assigns Ratings to Rutgers Enhanced Insurance Company
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has assigned a financial strength rating of B+
(Good) and an issuer credit rating of "bbb-" to Rutgers Enhanced
Insurance Company (Rutgers Enhanced) (Cherry Hill, NJ). The outlook
assigned to both ratings is negative.
These rating actions follow the execution of an approved pooling
agreement between Rutgers Enhanced, Rutgers Casualty Insurance Company
(Cherry Hill, NJ) and American European Insurance Company
(Concord, NH), which make up the American European Insurance Group
(AEG). This reinsurance agreement, in conjunction with various operating
synergies provided by the members of AEG, has resulted in Rutgers
Enhanced's inclusion into the group's ratings.
In May 2011, A.M. Best affirmed the FSR of B+ (Good) and ICRs of "bbb-"
of AEG based on its solid capitalization and recent actions takn by
management to improve the overall results that led to the improved 2010
operating results. The outlook for these ratings is negative.
These positive rating factors are partially offset by AEG's history of
volatile underwriting results and declining investment returns that have
led to weak earnings in prior years.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. 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."
Best's Credit Rating Methodology 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 © 2012 by A.M. Best Company, Inc. ALL RIGHTS
RESERVED.
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