OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has placed the ratings of SPARTA Insurance Group's members (collectively known as SPARTA) under review with negative implications, as it has started a strategic plan to review certain options including, but not limited to, sale of the group. SPARTA’s members include SPARTA Insurance Company, SPARTA American Insurance Company and SPARTA Specialty Insurance Company. All companies are headquartered in Hartford, CT.
Concurrently, A.M. Best has downgraded SPARTA’s financial strength rating to B++ (Good) from A- (Excellent) and issuer credit rating to “bbb” from “a-”. These rating actions follow recent discussions with SPARTA management regarding a large unanticipated prior year reserve charge in the fourth quarter of 2013. A.M. Best will monitor the final results when SPARTA files its year-end 2013 statutory results.
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.
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