A.M. Best Co. affirmed the financial strength rating of “A” (excellent) of Seattle-based Safeco Ins. Cos. Concurrently, Best also affirmed the “bbb+” rating on Safeco’s existing senior debt and the “bbb” rating on its capital securities. Additionally, Best affirmed the indicative ratings to the remaining $275 million under the company’s shelf registration. The outlook for all the ratings is stable.
The rating affirmations follow Safeco’s announcement that it completed the sale of its Life and Investment operations to an investor group led by White Mountains Insurance Group Ltd. and Berkshire Hathaway Inc. Proceeds from the sale, totaling $1.51 billion, will be used to retire debt and capital securities, return capital to shareholders and retain funds at the parent company.
These ratings reflect Safeco’s strong presence within the P/C industry, excellent capitalization and recently improved operating results following significant restructuring.
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