Michigan-based Meadowbrook Insurance Group Inc. announced the company has used $57.5 million of the $61.3 million raised in its recent public offering to reduce its debt and add to its insurance company subsidiaries’ surplus. It paid down its $47.0 million line of credit by $20.0 million and is in the process of renegotiating the terms of the balance of the credit facility.
In addition, the company has contributed $37.5 million to the surplus of its insurance company subsidiaries. This contribution has increased the surplus from $53.5 million as of March 31, 2002 to approximately $91.0 million on a pro forma basis. As a result of these contributions, the A.M. Best Company recently upgraded Meadowbrook’s rating from “B” (fair) to “B+” (very good) with a positive outlook.
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