A.M. Best Upgrades, Removes From Under Review Ratings of Producers Agriculture Insurance Co. and Producers Lloyds Insurance Co.
OLDWICK – JANUARY 30, 2015 (BusinessWire) A.M. Best has upgraded the financial strength rating to A+ (Superior) from A (Excellent) and the issuer credit ratings to “aa” from “a” of Producers Agriculture Insurance Company (ProAg) and Producers Lloyds Insurance Company (Producers Lloyds) (both domiciled in Amarillo, TX). The ratings have been removed from under review with developing implications and assigned a stable outlook.
The removal of the under review status reflects the completion of HCC Insurance Holdings, Inc.’s (HCC) (Dover, DE) [NYSE: HCC] acquisition of ProAg and Producers Lloyds, effective Jan. 1, 2015. The rating upgrades reflect the execution of an intercompany quota share reinsurance agreement, effective Jan. 6, 2015, between ProAg and Houston Casualty Company (HC) (Houston, TX), the lead insurance operating company within the HCC organization. Producers Lloyds will continue its historical intercompany quota share reinsurance agreement with ProAg and benefits from the new reinsurance agreement between ProAg and HC.
A.M. Best does not anticipate changes in the ratings of ProAg and Producers Lloyds in the near term; however, rating actions could occur if there are any adjustments in the reinsurance structure or there are any broad-based changes in HC’s rating level.
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.
Key insurance criteria reports utilized:
- Understanding BCAR for Property/Casualty Insurers
- Risk Management and the Rating Process for Insurance Companies
- Rating Members of Insurance Groups
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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