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“AA” counterparty credit and financial strength ratings on Old Republic Mercantile Insurance Co., and has subsequently withdrawn the ratings at the company’s request.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.
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