A.M. Best Places Ratings of General Fidelity Ins. Co. Under Review Negative; Comments on Ratings of TIG Ins. Co.

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has placed under review with negative implications the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of General Fidelity Insurance Company (GFIC) (Columbia, SC). Concurrently, A.M. Best has commented that the FSR of B+ (Good) and ICR of “bbb-” of TIG Insurance Company (TIC) are unchanged by its recent acquisition of GFIC, as TIC’s level of risk-adjusted capital remains supportive of its ratings following the consolidation of GFIC. TIC is an indirect, wholly owned subsidiary of Fairfax Financial Holdings Limited.

“A.M. Best’s Ratings & the Treatment of Debt.”

The rating actions on GFIC reflect A.M. Best’s concerns over continued adverse loss reserve development reported in 2010 and the placement of its business into run off. GFIC’s ratings are expected to remain under review while A.M. Best continues discussions with management regarding the status of GFIC’s reserves and its expected financial performance through run off.

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: “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 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.