A.M. Best Co. has upgraded the financial strength ratings (FSR) to A+ (Superior) from A (Excellent) and issuer credit ratings (ICR) to "aa-"from "a" for Northland Insurance Company (St. Paul, MN), Northfield Insurance Company (West Des Moines, IA), Northland Casualty Company (St. Paul, MN), American Equity Specialty Insurance Company (Hartford, CT) and American Equity Insurance Company (Phoenix, AZ), members of TNC Insurance Group.
As a result of a series of affiliated transactions entered into by The Travelers Companies, Inc. (Travelers) (St. Paul, MN) [NYSE:TRV] in 2007, designed to further consolidate the intercompany pooling agreements among its various subsidiaries, TNC Insurance Group's five members have become members of Travelers Insurance Companies, the first four as group members and American Equity Insurance Company, as a reinsured member. Travelers Insurance Companies has an FSR of A+ (Superior) and ICRs of "aa-". In addition, Fidelity and Guaranty Insurance Underwriters, Inc. (Waukesha, WI), St. Paul Guardian Insurance Company (St. Paul, MN) and St. Paul Mercury Insurance Company (St. Paul, MN), all reinsured members of Travelers Insurance Companies, have become group members of Travelers Insurance Companies, and their FSRs of A+ (Superior) and ICRs of "aa-" have been affirmed. Travelers affiliated transactions became effective October 1, 2007, retroactive to January 1, 2007. The outlook for all ratings is stable. The ratings of the remaining members of Travelers Insurance Companies remain unchanged.
Concurrently, A.M. Best has withdrawn the FSR of A (Excellent) and ICR of "a" and assigned a category NR-5 (Not Formally Followed) to TNC Insurance Group.
Effective October 1, 2007, Discover Reinsurance Company (Discover Re) (Indianapolis, IN) was merged with and into Travelers Indemnity Company (Hartford, CT), Travelers' flagship company and a member of Travelers Insurance Companies. As a result, A.M. Best has withdrawn the FSR of A- (Excellent) and the ICR of "a-" of Discover Re.
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.
