State Auto Insurance Companies (State Auto) reported that A.M. Best Co. has upgraded the financial strength rating (FSR) to “A+” (Superior) from “A-“(Excellent) and the issuer credit ratings (ICR) to “aa-” from “a-” of Patrons Mutual Insurance Company of Connecticut (Glastonbury), Litchfield Mutual Fire Insurance Company (Litchfield, Conn.) and Beacon National Insurance Company (Beacon National) (Wichita Falls, Texas).
The upgrades are the result of these companies becoming pooled members of State Auto, effective Jan. 1, 2008. State Auto’s publicly traded holding company is State Auto Financial Corporation of Columbus, Ohio.
In addition, A.M. Best has upgraded the FSR to “A+” (Superior) from “A-” (Excellent) and the ICR to “aa-” from “a-” of Beacon Lloyds Insurance Company (Wichita Falls, Texas) based on the inter-company reinsurance arrangement in place with its parent, Beacon National. The outlook for all ratings has been revised to stable from positive.
Concurrently, A.M. Best has withdrawn the FSRs of “A-” (Excellent) and the ICRs of “a-” of Beacon Insurance Group (Beacon) (Wichita Falls, Texas) and Patrons Mutual Group of Connecticut (Patrons) (Glastonbury, Conn.), assigning both groups a category NR-5 (Not Formally Followed).
These actions follow the previously announced affiliation of both Beacon and Patrons in March and December 2007, respectively.
A.M. Best also has withdrawn the FSR of “A-” (Excellent) and ICRs of “a-” of Petrolia Insurance Company and First Preferred Insurance Company (both of Wichita Falls) and assigned the companies a category NR-5 (Not Formally Followed). These companies, which were former members of Beacon, were dissolved in December 2007.
In addition, A.M. Best has withdrawn the FSR of “A-” (Excellent) and ICR of “a-” of Patrons Fire Insurance Company of Rhode Island (Patrons Fire) (Glastonbury, Conn.) and assigned it a category NR-3 (Rating Procedure Inapplicable). Patrons Fire, which was a former member of Patrons, is currently inactive.
Sources: State Auto Insurance Companies, www.stateauto.com; A.M. Best, www.ambest.com/ratings
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