A.M. Best Co. has withdrawn the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Harleysville-Atlantic Insurance Company (Harleysville-Atlantic) (Atlanta, GA) and Harleysville Insurance Company of Ohio (Harleysville Ohio) (Columbus, OH), following their December 31, 2011 merger with and into Harleysville Worcester Insurance Company (Harleysville Worcester).
These rating actions follow A.M. Best’s confirmation that both Harleysville-Atlantic and Harleysville Ohio have been merged into Harleysville Worcester, a subsidiary of Harleysville Group, Inc. (HGIC) (NASDAQ: HGIC). Subsequent to the merger, the surviving entity, Harleysville Worcester, assumed the respective pooling percentage of the merged companies. The operations of Harleysville Worcester remain unchanged post merger with no impact to policyholders. All companies are headquartered in Harleysville, PA, unless otherwise specified.
On September 30, 2011, A.M. Best placed the FSR of A (Excellent) and ICRs of “a” of Harleysville Mutual Insurance Company (Harleysville Mutual) and its subsidiaries under review with positive implications reflecting HGIC’s discussions with Nationwide Mutual Insurance Company (Nationwide Mutual) (Columbus, OH), a significantly larger and higher rated organization, to merge Harleysville Mutual into Nationwide Mutual. At the same time, A.M. Best placed the FSR of A- (Excellent) and ICR of “a-” of Harleysville Life Insurance Company (Harleysville Life) under review with developing implications. These ratings will remain under review until A.M. Best meets with management and discusses the strategic plan for Harleysville Life going forward.
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”; “Rating Members of Insurance Groups”; “A.M. Best’s Ratings & The Treatment of Debt”; “Understanding BCAR for Life/Health Insurers”; and ”Equity Credit for Hybrid Securities.” 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. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.