AM Best


A.M. Best Upgrades ICR of American Strategic Insurance Corp and Its Affiliates; Removes Ratings From Under Review


CONTACTS:

Neil Das Gupta
Senior Financial Analyst
(908) 439-2200, ext. 5206
neil.dasgupta@ambest.com

Joseph A. Burtone
Assistant Vice President
(908) 439-2200, ext. 5125
joseph.burtone@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JULY 31, 2015 01:41 PM (EDT)
A.M. Best has upgraded the issuer credit ratings (ICR) to "a+" from "a" and affirmed the financial strength rating (FSR) of A (Excellent) of American Strategic Insurance Corp (ASI) (St. Petersburg, FL) and its affiliates. The ratings have been removed from under review with positive implications and assigned a stable outlook. The ratings were placed under review following the announcement that The Progressive Corporation (Progressive) [NYSE:PGR] had agreed to acquire a controlling position in ARX Holding Corp., the parent company of ASI and its affiliates, for approximately $875 million in cash. (Please see related press release dated Dec. 18, 2014).

Following the close of the transaction in April 2015, Progressive's interest in the company is approximately 69%, up from the 5% interest it had held since 2012. ASI continues to operate as a separate company under its current management team and will benefit from its association with one of the leading personal automobile writers in the United States.

Following further discussions with Progressive's management, the resolution of the under review status with a one notch upgrade of the ICR reflects the financial and operational enhancements that Progressive is expected to provide to ASI over the long term. In addition, ASI's current distribution network has now been broadened through Progressive's extensive market penetration and cross-selling and "bundling" opportunities between ASI's predominantly homeowners line of business and Progressive's market profile as one of the leading writers of automotive insurance in the United States.

The ICRs have been upgraded to "a+" from "a" and the FSR of A (Excellent) has been affirmed for American Strategic Insurance Corp and its following affiliates:


  • American Capital Assurance Corp

  • ASI Assurance Corp

  • ASI Home Insurance Corp

  • ASI Lloyds

  • ASI Preferred Insurance Corp

  • ASI Select Insurance Corp

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.

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