|[June 27, 2014]
A.M. Best Places Ratings of AmFed National Insurance and AmFed Casualty Insurance Under Review With Negative Implications
OLDWICK, N.J. --(Business Wire)--
A.M. Best has placed under review with negative implications the
financial strength ratings of A (Excellent) and the issuer credit
ratings of "a" of AmFed National Insurance Company and AmFed
Casualty Insurance Company (AmFed Companies) (both domiciled in
Ridgeland, MS), Both companies are subsidiaries of Companion Property
and Casualty Insurance Company (Companion) (Columbia, SC), which is
directly owned by Blue Cross and Blue Shield of South Carolina
(BCBSSC) (Columbia, SC).
These rating actions follow the disclosure that Companion has entered
into a purchase agreement for the sale of all of the issued and
outstanding equity of the AmFed Companies to AmFed Holding Company, LLC.
The companies have been placed under review with ngative implications
due to the fact that once the sale is complete, the AmFed companies will
no longer be members of the Companion pooling agreement and will no
longer benefit from the significant financial and reinsurance support
provided by BCBSSC.
The ratings will remain under review until the transaction is closed.
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. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
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