A.M. Best Removes From Under Review and Upgrades Ratings of Republic Underwriters Insurance Company and Affiliates

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has removed from under review with positive implications and upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to “a” from “a-” of Republic Underwriters Insurance Company (RUIC) (Dallas, TX) and its subsidiaries and controlled affiliates (collectively referred to as Republic). The outlook assigned to each rating is stable. See below for a complete list of companies.

The rating upgrades follow the acquisition of the companies by AmTrust Financial Services, Inc. (AmTrust) [NASDAQ:AFSI] and the subsequent approval and execution of a quota share reinsurance agreement between RUIC and AmTrust International Insurance, Ltd. The rating actions also reflect the financial flexibility and other synergies and implicit benefits Republic will derive from the AmTrust enterprise. A.M. Best anticipates that the reinsurance and other expense efficiencies Republic will gain as it is integrated into AmTrust’s operations over the next 12 to 36 months will bring underwriting and operating results more in-line with those of its peers.

The FSR has been upgraded to A (Excellent) from A- (Excellent) and the ICRs upgraded to “a” from “a-” with each rating assigned a stable outlook for Republic Underwriters Insurance Company and its following reinsured subsidiaries and affiliates:

• Republic Lloyds
• Southern Insurance Company
• Southern County Mutual insurance Company
• Republic-Vanguard Insurance Company
• Republic Fire and Casualty Insurance Company
• Southern Underwriters Insurance Company

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.

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A.M. Best
Jennifer Marshall, +1 908 439 2200, ext. 5327
Assistant Vice President
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Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
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Michael J. Lagomarsino, CFA, FRM, +1 908 439 2200, ext. 5810
Vice President
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Jim Peavy, +1 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best

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