Ratings Recap: Ohio Casualty; Unum; CICA; Converium (No. Am.); MGIC; Wisconsin Mutual

August 1, 2007

Standard & Poor’s Ratings Services announced that its ‘BBB-‘ counterparty credit rating on Ohio Casualty Corp. and its ‘A-‘ counterparty credit and financial strength ratings on the members of the Ohio Casualty Insurance Co. Intercompany Pool are remaining on CreditWatch with positive implications. The ratings were placed on CreditWatch on May 7, 2007, following Liberty Mutual Group Inc.’s announced plan to acquire OCAS for about $2.7 billion in an all-cash deal.

Standard & Poor’s Ratings Services has revised its outlook on Unum Group’s operating subsidiaries to positive from stable. S&P also affirmed its ‘BB+’ counterparty credit rating on UNM and affirmed its ‘BBB+’ counterparty credit and financial strength ratings on UNM’s various operating subsidiaries. The outlook on UNM remains positive.

Standard & Poor’s Ratings Services has affirmed its ‘A-‘ long-term counterparty credit and financial strength ratings on Combined Insurance Co. of America and Combined Life Insurance Co. of NY (collectively, CICA) with a positive outlook. S&P said the “affirmation comes on the announcement that CICA’s parent, Aon Corp. (Aon), is exploring strategic alternatives including a spin-off to Aon’s shareholders or a possible sale.”

Fitch Ratings has downgraded the insurer financial strength (IFS) rating of Mortgage Guaranty Insurance Corporation (MGIC) and MGIC Australia Pty Ltd. to ‘AA’ from ‘AA+’ and the senior debt rating of MGIC Investment Corporation (MGIC Investment) to ‘A’ from ‘A+’. Fitch has also removed MGIC and MGIC Investment from Rating Watch Negative and assigned a stable outlook. However Fitch has placed the ‘A’ long-term debt ratings of The Radian Group Inc. and the ‘AA’ IFS ratings of all of its mortgage and financial guaranty subsidiaries on Rating Watch Negative, as well as all obligations insured by Radian Asset Assurance Inc. and subsidiary Radian Asset Assurance Ltd., the financial guaranty subsidiaries of Radian.

Standard & Poor’s Ratings Services has affirmed its ‘BBB’ counterparty credit rating on Converium Holdings (North America) Inc. (CHNA) with a stable outlook. “The affirmation reflects National Indemnity Co.’s (NICO) 100 percent ownership in CHNA and its North America operating subsidiary, Converium Reinsurance (North America) Inc.,” state S&P credit analyst Damien Magarelli. “The rating also reflects CHNA’s purchase by NICO as an opportunistic acquisition of a nonstrategic entity within NICO.”

A.M. Best Co. has upgraded the financial strength rating (FSR) to “A”- (Excellent) from “B++” (Good) and assigned an issuer credit rating (ICR) of “a-” to Wisconsin Mutual Insurance Company. Best also revised its outlook on the FSR to stable from positive. The outlook assigned to the ICR is stable. “The rating upgrade reflects Wisconsin Mutual’s strong risk-adjusted capitalization, positive trend of operating income and established market presence in Wisconsin,” Best noted.

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