CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 09, 2009 12:00 AM (EDT)
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 Best's Rating Center.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Rating Centerwww.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.