OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Virginia Surety Company, Inc. (Virginia Surety) (Chicago, IL). The outlook for both ratings is stable.
These ratings 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 loss portfolio reinsurance agreement with a former affiliate that covers traditional property/casualty business and the unlimited guarantee and indemnification provided by that company’s new owner, 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.
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The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.