A.M. Best Co. has placed the financial strength rating (FSR) of
A- (Excellent) and issuer credit ratings (ICR) of “a-”
of Darwin Group (Darwin) (Wilmington, DE) and its members under
review with positive implications. Concurrently, the FSR of A-
(Excellent) and ICR of “a-”
of Vantapro Specialty Insurance Company (Vantapro) (Chicago, IL)
remain under review, and the implications have been revised to
developing from negative. (See below for a detailed listing of the
companies and ratings.)
These rating actions follow the recent announcement that Allied World
Assurance Company Holdings, Ltd (Allied World Holdings) (Bermuda) [NYSE:
AWH] has entered into a definitive agreement
to acquire Darwin Professional Underwriters, Inc. (DPUI)
(Wilmington, DE) [NYSE: DR].
A.M. Best expects the ICR of “bbb-”
of DPUI to be withdrawn upon the completion of its acquisition by Allied
World Holdings.
The under review status also reflects the pending implementation of a
substantial quota share reinsurance agreement between Darwin and Allied
World Assurance Company, Ltd (Bermuda) (Allied World), a subsidiary
of Allied World Holdings. Vantapro was originally placed under review
pending the implementation of a substantial quota share reinsurance
agreement between Vantapro and its immediate parent, Darwin National
Assurance Company (Delaware). Vantapro also is expected to be party
to the quota share reinsurance agreement with Allied World.
The ratings will remain under review pending the completion of the
transaction, which is subject to the satisfaction of certain closing
conditions and is expected to close during fourth quarter 2008, and once
the quota share reinsurance agreements have been approved and
implemented. At that time, A.M. Best will likely upgrade and remove the
ratings from under review based upon the explicit support provided by
Allied World through the quota share agreement.
The FSR of A- (Excellent) and ICRs of “a-”
have been placed under review with positive implications for Darwin
Group and its following members:
-
Darwin National Assurance Company
-
Darwin Select Insurance Company
The FSR of A- (Excellent) and ICR of “a-”
remain under review and the implications have been revised to developing
from negative for Vantapro Specialty Insurance Company.
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.
A.M. Best Co.
Analysts:
Joseph Roethel,
908-439-2200, ext. 5630
joseph.roethel@ambest.com
or
Daniel
Ryan, 908-439-2200, ext. 5325
daniel.ryan@ambest.com
or
Public
Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
