A.M. Best Co. has placed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of MEEMIC Insurance Co. in Michigan under review with positive implications.
These rating actions are based on the announcement that a definitive
agreement has been reached for the purchase of MEEMIC by Auto Club Insurance Association, the lead member of The Auto Club Group, from Motors Insurance Corp., the lead member of GMAC Insurance Group.
A. M. Best said the positive implications reflect the likely positive impact on MEEMIC from its future parent, which is a higher rated organization. The deal is expected to close in second quarter 2009 following regulatory approvals.
In addition, the FSR of A- (Excellent) and ICRs of “a-” of GMACI and its members are unchanged at this time, as are the FSR of A (Excellent) and ICRs of “a” of The Auto Club Group and its members, according to the rating agency.
Source: Best’s Ratings
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