CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 20, 2011 12:00 AM (EDT)
A.M. Best Co. has placed under review with positive implications the financial strength rating of A- (Excellent) and issuer credit ratings of "a-" of Esurance Insurance Group (Esurance) and its members, Esurance Insurance Company, Esurance Insurance Company of New Jersey and Esurance Property and Casualty Insurance Company. All companies are headquartered in San Francisco, CA.
This action follows the announcement on May 18, 2011 of the signing of a definitive agreement between White Mountains Insurance Group, Ltd. (WTM) [NYSE: WTM] and The Allstate Corporation (Allcorp) [NYSE: ALL], in which Allcorp will purchase 100% of the stock of White Mountains Inc. (WMI) and Answer Financial Inc (Answer). WMI owns Esurance Holdings Inc., which owns all the Esurance companies.
The under review status with positive implications reflects the anticipated financial and operational support of Allcorp. A.M Best plans to resolve the under review status upon the completion of the transaction, which is expected in the fall of 2011, subject to regulatory approval.
The under review status also recognizes a potential for a favorable change in Esurance's ratings and/or its rating outlook based on the outcome of A.M Best's discussions with Allcorp's management team and the close of the transaction.
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: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; and "Natural Catastrophe Stress Test Methodology." 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.