A.M. Best has commented that the financial strength rating (FSR) of A (Excellent) and the issuer credit rating (ICR) of “a” of Comp Options Insurance Company, Inc. (Comp Options) (Jacksonville, FL) are unchanged following the announcement that AmTrust Financial Services, Inc. (AmTrust) (headquartered in New York, NY) [NASDAQ:AFSI] has agreed to acquire Comp Options, a subsidiary of Blue Cross and Blue Shield of Florida, Inc. (Florida Blue). The outlook for both ratings is stable.
The transaction between AmTrust and Comp Options is expected to close in the fall of 2014 and is subject to regulatory approvals and other customary closing conditions. At that time, it is planned that Comp Options will become a participant in the existing AmTrust pool, the current participants of which are assigned an FSR of A (Excellent) and ICRs of “a.”
It is anticipated there will be operational synergies given Comp Option’s complimentary target market of low-hazard workers’ compensation business. Comp Options will continue to retain its name and assess opportunities of continuing to work with Florida Blue on accessing its sales network and approaches to medical cost management.
While A.M. Best believes it is highly likely the acquisition will be completed, in the event it does not occur, Comp Options’ current ratings and strategic importance to Florida Blue will need to be re-evaluated.The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. 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 © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV