S&P affirmed its “AA” counterparty credit and financial strength ratings on Old Republic Mercantile Insurance Co., and has subsequently withdrawn the ratings at the company’s request. The ratings withdrawal does not affect the ratings on Mercantile’s parent company, Old Republic International Corp. (ORI; A+/Stable/A-1), or any of Mercantile’s rated affiliates, according to S&P.
Mercantile is a very small internal reinsurer, which assumes business from its affiliate Old Republic Insurance Co. (ORINSCO). Mercantile’s plans are to commute all outstanding reserves and obligations back to ORINSCO July 1, 2004, and cease operations at that point. Subsequent to the commutation, company management plans to merge Mercantile with another ORI affiliate, sell the shell to an outside third party, or completely dissolve the company.
Was this article valuable?
Here are more articles you may enjoy.
Former Broker, Co-Defendant Sentenced to 20 Years in Fraudulent ACA Sign-Ups 
Experian Launches Insurance Marketplace App on ChatGPT 
Judge Tosses Buffalo Wild Wings Lawsuit That Has ‘No Meat on Its Bones’ 
Insurance Broker Stocks Sink as AI App Sparks Disruption Fears From This Issue
