A.M. Best Assigns Ratings to North Light Specialty Insurance Company

A.M. Best Co. has assigned a financial strength rating of A (Excellent) and an issuer credit rating of �a� to North Light Specialty Insurance Company (North Light). The outlook assigned to both ratings is stable. North Light is a wholly owned subsidiary of Allstate Insurance Company, with both companies having as their ultimate parent, The Allstate Corporation (Allstate) [NYSE: ALL]. All companies are domiciled in Northbrook, IL, unless otherwise specified.

The ratings are based on North Light�s solid risk-adjusted capitalization and operating support provided by the affiliates of Allstate Insurance Group. This operating support is demonstrated by a 100% quota share reinsurance contract with Allstate Insurance Company for countrywide business (excluding Florida and New Jersey). In the event North Light commences writing business in Florida and/or New Jersey, a similar 100% quota share reinsurance contract will be implemented with an Allstate subsidiary. It is anticipated that the Florida business will be reinsured with Allstate Floridian Insurance Company and the New Jersey business will be reinsured with Allstate New Jersey Insurance Company prior to North Light beginning to write business in those states. Operating support also is provided by the same underwriting, pricing and claims infrastructure that is used by Allstate Insurance Group.

North Light offers personal lines property coverage on a non-admitted basis for unique, under served customer segments or those residing in high risk markets such as hurricane, wildfire or earthquake-prone regions. Therefore, the positive rating attributes are partially offset by North Light�s significant gross catastrophe leverage and the execution risk associated with underwriting, pricing and handling claims on this highly catastrophe exposed business. However, the gross catastrophe exposure is reduced to a nominal level on a net basis through quota share reinsurance currently provided by Allstate Insurance Company.

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, which 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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