A.M. Best Places Ratings of PMA Capital Insurance Company Under Review with Negative Implications
February 13 2008 - 12:02PM
Business Wire
A.M. Best Co. has placed the financial strength rating (FSR) of B
(Fair) and issuer credit rating (ICR) of �bb� of PMA Capital
Insurance Company (PMACIC) (Philadelphia, PA) under review with
negative implications following the announcement that its parent,
PMA Capital Corporation (PMA Capital) (Blue Bell, PA) (NASDAQ:
PMACA), has entered into a letter of intent with a third party to
divest its run-off operations. The ICR of �bb� of PMA Capital and
the FSR of A- (Excellent) and ICRs of �a-� of PMA Insurance Group
(Blue Bell, PA) and its members are unchanged. Additionally, the
debt and indicative ratings of PMA Capital and PMA Capital Trust I
and II are unchanged. The outlook for these ratings is stable. The
placing of PMACIC�s ratings under review reflects the planned sale
to a third party of its discontinued, run-off operations, which
consist of former reinsurance and excess and surplus lines. While
the sale includes PMA Re Management Company, including the key
management personnel handling the run off, the under review status
reflects A.M. Best�s concern with the lack of future commitment
from PMA Capital to support run-off operations, uncertainty with
the level of commitment of the new parent to sustain operations and
with the execution risk associated with managing the run-off plan.
For Best�s Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings. 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.
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