A.M. Best Co. has placed the financial strength rating (FSR) of A+ (Superior) and issuer credit rating (ICR) of "aa-" of HCC Insurance Company (HCCIC) (Indianapolis, IN) under review with negative implications, following HCCIC's immediate parent, Houston Casualty Company (HC), entering into a definitive agreement for the sale of HCCIC to an outside party. HCCIC is a small, inactive company.
In concurrence with the sale, and with respect to any new business only, HCCIC will terminate its existing 100% quota share reinsurance contract with HC from whom it derives its ratings. HCCIC's underwriting activities, prior to cessation, were focused on commercial property packages. HCCIC began to exit this business in June 2008.
The ICR of "a-" and debt ratings of HCCIC's ultimate parent, HCC Insurance Holdings, Inc. and the FSRs and ICRs of its subsidiaries are unchanged.
The ratings of HCCIC will remain under review pending further evaluation of the transaction by A.M. Best and all customary regulatory approvals.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
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.
Contacts:
A.M. Best Co.
Analysts
David S. Blades, CPCU,
908-439-2200, ext. 5422
david.blades@ambest.com
or
Joseph
M. Roethel, 908-439-2200, ext. 5630
joseph.roethel@ambest.com
or
Public
Relations
Rachelle Morrow,908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim
Peavy,908-439-2200, ext. 5644
james.peavy@ambest.com
