A.M. Best Upgrades Ratings of Esurance Insurance Company and Its Subsidiary
December 21 2011 - 10:16AM
Business Wire
A.M. Best Co. has upgraded the financial strength rating
(FSR) to A+ (Superior) from A- (Excellent) and issuer credit
ratings (ICR) to “aa-” from ”a-” of Esurance Insurance
Company (EIC) and its subsidiary, Esurance Property and
Casualty Insurance Company (EPC). At the same time, A.M. Best
has affirmed the FSR of A- (Excellent) and the ICR of “a-” of EIC’s
other subsidiary, Esurance Insurance Company of New Jersey
(EICNJ). All ratings have been removed from under review with
positive implications and assigned a stable outlook. All the above
companies are headquartered in San Francisco, CA.
The rating actions follow the October 7, 2011 closing of the
acquisition of EIC, EPC and EICNJ by The Allstate
Corporation (Allstate) (NYSE: ALL) (Northbrook, IL) from
White Mountains Insurance Group, Ltd. (Hamilton, Bermuda).
The ratings of EIC and EPC reflect the implementation of 100%
reinsurance support provided by affiliate, Allstate Insurance
Company, the lead company in Allstate Insurance Group.
The ratings of EICNJ reflect the implementation of 100% reinsurance
support provided by affiliate, Allstate New Jersey Insurance
Company, the lead company in the Allstate New Jersey
Insurance Group.
These acquisitions will expand on Allstate’s strategy of
utilizing different value propositions for distinct customer
segments. Furthermore, A.M. Best believes the acquisition of EIC,
EPC and EICNJ will improve Allstate’s overall market position by
increasing its distribution capacity in the growing direct channel.
EIC, EPC and EICNJ sell personal automobile insurance directly to
customers online and through select agents, including their sister
company, Answer Financial.
As a result of the EIC, EPC and EICNJ acquisitions by Allstate,
the ratings of Esurance Insurance Group, no longer exist.
The principal methodology used in determining these ratings is
Best’s Credit Rating Methodology -- Global Life and Non-Life
Insurance Edition, which provides a
comprehensive explanation of A.M. Best’s rating process and
highlights the different rating criteria employed. Additional key
criteria utilized include: “Rating Members of Insurance Groups”;
“Risk Management and the Rating Process for Insurance Companies”;
and “Understanding BCAR for Property/Casualty Insurers.”
Methodologies can be found at
www.ambest.com/ratings/methodology.
Founded in 1899, 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 © 2011 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
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