This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Comments On Ratings Of Donegal Insurance Group, Peninsula Insurance Group And Donegal Group Inc.

A.M. Best Co. has commented that the financial strength ratings of A (Excellent) and issuer credit ratings (ICR) of “a” of Donegal Insurance Group (group) and its members as well as Peninsula Insurance Group and its members, are unchanged following the announcement by Donegal Group Inc. (Donegal) [NASDAQ: DGICA and DGICB] that it has agreed to acquire all of the outstanding stock of Michigan Insurance Company (MIC) (headquartered in Grand Rapids, MI), a majority-owned stock subsidiary of West Bend Mutual Insurance Company. Concurrently, A.M. Best has commented that the ICR of “bbb” of Donegal also is unchanged. The outlook for all ratings is stable.

This commentary follows the recent announcement that Donegal has entered into a definitive agreement to acquire all of the outstanding stock of MIC. The acquisition is subject to a number of customary closing conditions, including the approval of the Insurance Department of the State of Michigan and is anticipated to close in the fourth quarter of 2010.

The purchase price will be calculated based on the GAAP book value of MIC as of the closing date of the transaction. Donegal estimates that the consideration payable to the shareholders of MIC will be approximately $39.0 million. As of March 31, 2010, Donegal had approximately $936.0 million in total assets and approximately $385.4 million in stockholders’ equity.

The acquisition will expand Donegal’s Midwestern operations into Michigan and enhance the group’s geographic diversification and growth opportunities. MIC also will benefit from Donegal’s technology and operational support to further enhance its policyholder and agency relationships. A.M. Best anticipates that Donegal's strong capitalization will provide ample support to fully integrate MIC's operations without materially impacting the group's overall results or financial strength.

The FSR of A (Excellent) and ICRs of “a” are unchanged for the Donegal Insurance Group and its following members:

  • Atlantic States Insurance Company
  • Donegal Mutual Insurance Company
  • Southern Insurance Company of Virginia
  • Le Mars Insurance Company
  • Sheboygan Falls Insurance Company
  • Southern Mutual Insurance Company

The FSR of A (Excellent) and ICRs of “a” are unchanged for the Peninsula Insurance Group and its following members:

  • The Peninsula Insurance Company
  • Peninsula Indemnity Company

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.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. For more information, visit www.ambest.com.

Copyright Business Wire 2010

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs