Standard & Poor’s revised its financial strength ratings on Legion Insurance Co. and Villanova Insurance Co. to “R” after a Pennsylvania State Court placed the companies under regulatory control effective April 1.
S&P also said it lowered its financial strength rating on Legion Indemnity Co., the remaining pool member, to “CCC” because it expects the company’s regulators to consider a similar action.
An analyst for S&P stated that the two companies have “$1.3 billion of assets and continue to pay claims,” adding that it is uncertain whether the Legion and Villanova will be rehabilitated or liquidated.
The ratings on Legion Indemnity Co. and Mutual Risk Management Ltd., the Bermuda-based holding company, remain on CreditWatch negative, where they were placed on Dec. 19, 2001.
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