A.M. Best Places Ratings of Mendota and Mendakota Under Review With Negative Implications; Ratings of TNC Group Unchanged
January 24 2007 - 10:40AM
Business Wire
A.M. Best Co. has placed the financial strength ratings (FSR) of A
(Excellent) and the issuer credit ratings (ICR) of �a� of Mendota
Insurance Company (Mendota) and its wholly owned subsidiary,
Mendakota Insurance Company (Mendakota), under review with negative
implications. Both companies are domiciled in St. Paul, MN, and
currently participate in the TNC Insurance Group seven member,
inter-company pool, a sub-group of The St. Paul Travelers
Companies, Inc. (St. Paul Travelers) (St. Paul, MN) [NYSE:STA].
These rating actions are a result of St. Paul Travelers having
reached a definitive agreement to sell its dedicated non-standard
automobile subsidiaries, Mendota and Mendakota, to Kingsway
Financial Services Inc. (Kingsway) (Mississauga, Ontario)
[TSX/NYSE:KFS]. The placing of the ratings under review primarily
reflects that upon the completion of the sale of these companies,
they will no longer be part of the TNC Insurance Group pool and St.
Paul Travelers, and will be evaluated based upon their strategic
positioning within Kingsway. The FSRs of A (Excellent) and the ICRs
of �a� of TNC Insurance Group are unchanged by this planned
transaction. The ratings of Mendota and Mendakota will remain under
review pending regulatory approval and completion of the
transaction, which is expected in second quarter 2007. 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 full-service credit rating
organization dedicated to serving the financial services
industries, including the banking and insurance sectors. For more
information, visit www.ambest.com.
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