A.M. Best Co. announced that it “has placed the financial strength rating of A- (Excellent) of the Prudential Property and Casualty New Jersey Group (PruPac New Jersey Group) (Newark, NJ) and its affiliated companies under review with negative implications.”
The rating agency indicated that the review status was a direct result of the “signing of a definitive agreement between Palisades Safety & Insurance Association, an affiliate of Palisades Group (Palisades) (Berkley Heights, NJ) and Prudential Financial Inc. (Newark, NJ), for the sale of The Prudential Property and Casualty New Jersey Holdings, Inc. (Newark, NJ).” (See IJ Website May 23)
It noted that “The negative implications reflect the diminished capital position of the PruPac New Jersey Group and the reduced financial flexibility of this entity since Prudential Financial Inc. has exited the property/casualty sector. The transaction–which is subject to regulatory approval–is expected to be completed in the fourth quarter of 2003. The rating will remain under review until regulatory approval is received.”
Best said that when the approval is granted, and following further discussions with management, it would update the financial strength rating of the PruPac New Jersey Group.
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