A.M. Best Upgrades Issuer Credit Ratings of American Strategic Insurance Corp and Its Affiliates; Removes Ratings From Under Review

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has upgraded the issuer credit ratings (ICR) to “a+” from “a” and affirmed the financial strength rating (FSR) of A (Excellent) of American Strategic Insurance Corp (ASI) (St. Petersburg, FL) and its affiliates. The ratings have been removed from under review with positive implications and assigned a stable outlook. The ratings were placed under review following the announcement that The Progressive Corporation (Progressive) [NYSE:PGR] had agreed to acquire a controlling position in ARX Holding Corp., the parent company of ASI and its affiliates, for approximately $875 million in cash. (Please see related press release dated Dec. 18, 2014).

Following the close of the transaction in April 2015, Progressive’s interest in the company is approximately 69%, up from the 5% interest it had held since 2012. ASI continues to operate as a separate company under its current management team and will benefit from its association with one of the leading personal automobile writers in the United States.

Following further discussions with Progressive’s management, the resolution of the under review status with a one notch upgrade of the ICR reflects the financial and operational enhancements that Progressive is expected to provide to ASI over the long term. In addition, ASI’s current distribution network has now been broadened through Progressive’s extensive market penetration and cross-selling and “bundling” opportunities between ASI’s predominantly homeowners line of business and Progressive’s market profile as one of the leading writers of automotive insurance in the United States.

The ICRs have been upgraded to “a+” from “a” and the FSR of A (Excellent) has been affirmed for American Strategic Insurance Corp and its following affiliates:

• American Capital Assurance Corp
• ASI Assurance Corp
• ASI Home Insurance Corp
• ASI Lloyds
• ASI Preferred Insurance Corp
• ASI Select Insurance Corp

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 visit A.M. Best’s Ratings & Criteria Center.

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

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best Company
Neil Das Gupta, 908-439-2200, ext. 5206
Senior Financial Analyst
[email protected]
or
Joseph A. Burtone, 908-439-2200, ext. 5125
Assistant Vice President
[email protected]
or
Christopher Sharkey, 908-439-2200, ext. 5159
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company

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