A.M. Best Co. has placed under review with negative implications
the financial strength rating of A- (Excellent) and issuer credit rating
of “a-” of WRM America Indemnity Company (WRMAI) (Uniondale, NY).
These rating actions follow the recent announcement by WRMAI of the
transaction involving its ultimate parent, The Wright Insurance
Group, LLC (TWIG) and Brown & Brown, Inc. (B&B) [NYSE:
BRO].
Under the terms of the transaction and subject to regulatory approvals,
B&B will be acquiring 100% of the membership interests of TWIG and its
subsidiaries, with the exception of WRMAI.
The ratings of WRMAI reflect its solid capitalization, experienced
management team and strong claim and risk management programs. Partially
offsetting these positive rating factors is the execution risk
associated with the expansion of an existing single-state platform into
additional states within the United States. Additional rating factors
are the company's fundamental business strategies, which include
providing stable insurance coverage in its niche education market
coupled with high quality service for its insureds.
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.
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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