OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has commented that the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a” of Fireman’s Fund Insurance Company (FFIC) (Novato, CA) and its reinsured affiliates, collectively referred to as Fireman’s Fund Insurance Companies (Fireman’s Fund), are unchanged following the announcement that ACE Limited (ACE) (Zurich, Switzerland) [NYSE: ACE] has entered into a definitive agreement with Allianz SE (Germany) to acquire Fireman’s Fund personal lines insurance business in the United States. (See below for a detailed listing of the Fireman’s Fund companies.)
ACE has agreed to pay Allianz SE $365 million for the renewal rights related to Fireman’s Fund personal lines business, which mainly focuses on high net worth customers. The acquisition also includes reinsurance of all existing reserves related to that business and access to a network of over 1,100 agents and brokers. Subject to legal and regulatory approval, the transaction is expected to be completed in the second quarter of 2015. The current ratings of Fireman’s Fund and its reinsured affiliates will be re-evaluated upon A.M. Best’s receipt of additional information and further discussions with management.
The FSR of A (Excellent) and the ICRs of "a" are unchanged for Fireman's Fund Insurance Company and its following reinsured affiliates:
- American Automobile Insurance Company
- National Surety Corporation
- The American Insurance Company
- Associated Indemnity Corporation
- Chicago Insurance Company
- Fireman’s Fund Indemnity Corporation
- Fireman’s Fund Insurance Company of Hawaii, Inc.
- Fireman’s Fund Insurance Company of Ohio
- Interstate Fire & Casualty Company
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.
Key insurance criteria reports utilized:
• Catastrophe Analysis in A.M. Best Ratings
• Insurance Holding Company and Debt Ratings
• Rating Members of Insurance Groups
• Risk Management and the Rating Process for Insurance Companies
• The Treatment of Terrorism Risk in the Rating Evaluation
• Understanding BCAR for Property/Casualty Insurers
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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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