AM Best Removes From Under Review With Positive Implications, Upgrades Credit Ratings of State Automobile Mutual Insurance Company and Operating Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of State Automobile Mutual Insurance Company (SAM) and its operating subsidiaries. Concurrently, AM Best has removed from under review with positive implications and upgraded the Long-Term ICR to “bbb” (Good) from “bbb-” (Good) of SAM’s intermediate holding company, State Auto Financial Corporation (STFC). The outlook assigned to these Credit Ratings (ratings) is stable. All of the above companies are headquartered in Columbus, OH. (See below for a listing of the companies.)

The ratings of SAM reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

These rating actions follow the announcement on March 1, 2022, of the close of the acquisition of the SAM companies by Liberty Mutual Holding Company Inc. (LMHC) and its operating subsidiaries. LMHC plans to incorporate the SAM operating companies into its existing reinsurance agreements with its other operating subsidiaries. In addition, the SAM operating companies will benefit from strategic relationships and operational support provided by LMHC.

The FSR has been removed from under review with positive implications and upgraded to A (Excellent) from A- (Excellent); and the Long-Term ICRs removed from under review with positive implications and upgraded to “a” (Excellent) from “a-” (Excellent) for the following operating subsidiaries of State Automobile Mutual Insurance Company:

• State Auto Property & Casualty Insurance Company
• Milbank Insurance Company
• State Auto Insurance Company of Ohio
• Patrons Mutual Insurance Company of Connecticut
• Meridian Security Insurance Company
• State Auto Insurance Company of Wisconsin
• Rockhill Insurance Company
• Plaza Insurance Company
• American Compensation Insurance Company
• Bloomington Compensation Insurance Company

This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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