A.M. Best Affirms Ratings of Rockhill Insurance Group and Its Members

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of Rockhill Insurance Group (Rockhill) and its four pool members led by Rockhill Insurance Company (RIC) (Arizona). The outlook for these ratings is stable. (See below for a detailed listing of the companies and ratings.)

The rating affirmations recognize the recent announcement that State Automobile Mutual Insurance Company (State Auto Mutual) (Columbus, OH), the lead member of State Auto Insurance Companies (State Auto), has entered into a definitive agreement to acquire Rockhill’s parent, Rockhill Holding Company (RHC). State Auto intends to retain Rockhill’s management and associates, operating Rockhill as a stand-alone subsidiary of State Auto Mutual. State Auto Mutual does not plan to pool Rockhill’s operations with those of State Auto’s for the foreseeable future. The acquisition is subject to customary regulatory approvals and is expected to close in first quarter 2009.

The ratings of Rockhill reflect its solid risk-adjusted capital position and adequate profitability during RIC’s first three years of operation. The ratings also consider the profitable track record of management, adherence to sound underwriting and pricing fundamentals, conservative balance sheet and the mature book of workers’ compensation business.

Rockhill is a diversified specialty insurance operation with a focus on niche surplus lines business, including wind, earthquake, all other perils, general liability, umbrella, surety and environmental coverage, as well as workers’ compensation business through RHC’s December 2007 acquisition of RTW, Inc.

The FSR of A- (Excellent) and ICRs of “a-” have been affirmed for Rockhill Insurance Group and its following pooled members:

• Rockhill Insurance Company
• Plaza Insurance Company
• American Compensation Insurance Company
• Bloomington Compensation Insurance Company

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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.