A.M. Best Responds to Legal Entity Merger of Westchester Fire Insurance Company and ACE Indemnity Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has withdrawn the financial strength rating (FSR) of A+ (Superior) and issuer credit rating (ICR) of “aa-” of Westchester Fire Insurance Company (WFIC) (New York, NY) and assigned an NR-5 (Not Formally Followed) to the FSR and an “nr” to the ICR.

Effective January 1, 2011, WFIC was merged into an affiliate company, ACE Indemnity Insurance Company (ACE Indemnity) (Philadelphia, PA), both of which are indirect wholly owned subsidiaries of ACE Limited (NYSE: ACE).

The FSR of A+ (Superior) and ICR of “aa-” of ACE Indemnity are unchanged as a result of this legal entity merger. However, subsequent to the merger, the name of ACE Indemnity was changed to Westchester Fire Insurance Company.

The sole purpose of this merger was to relocate WFIC from New York to Pennsylvania in order to simplify and streamline business processes.

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 “Rating Members of Insurance Groups.” Methodologies 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.

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