A.M. Best Removes from under Review Ratings of Integon Specialty; Now Named Maiden Specialty Insurance Company
September 09 2009 - 5:50PM
Business Wire
A.M. Best Co. has removed from under review with negative
implications and affirmed the financial strength rating (FSR) of A-
(Excellent) and issuer credit rating (ICR) of “a-” of Integon
Specialty Insurance Company (Integon Specialty), which was
subsequently renamed, Maiden Specialty Insurance Company
(MSIC) (both of Winston-Salem, NC). These affirmations follow
receipt of the approved intercompany quota share reinsurance
agreement between MSIC and its affiliate, Maiden Reinsurance
Company (MRC) (Maryland Heights, MO). The outlook assigned to
the ratings is stable.
On September 1, 2009, Integon Specialty’s was purchased by
Maiden Holdings, Ltd. (Maiden Holdings) (Hamilton, Bermuda)
(NASDAQ: MHLD) through its downstream holding company, Maiden
Holdings North America, Ltd. (Hamilton, Bermuda), from GMAC
Insurance Management Corp. (GMAC-IMC).
The ratings reflect MSIC’s strategic importance to Maiden
Holdings in forming a dedicated U.S. reinsurance platform providing
treaty, accident and health and specialty facultative reinsurance.
Additionally, the ratings reflect Maiden Holdings’ financial
commitment and strong balance sheet, as well as management’s
commitment to maintain underwriting discipline as former GMAC
reinsurance business is written through MSIC. In support of the
transaction, Maiden Holdings’ management raised approximately $260
million through a trust preferred offering.
On June 11, 2009, the FSR and ICR of Integon Specialty were
placed under review with negative implications, due to a previously
signed agreement to sell the company to Maiden Holdings. On June
12, 2009, A.M. Best affirmed the FSR of A- (Excellent) and ICR of
“a-” of MRC with a stable outlook.
For Best’s Credit Ratings, an overview of the rating process and
rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings,
including any additional methodologies and factors that may have
been considered, can be found at
www.ambest.com/ratings/methodology.
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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