A.M. Best Co. has withdrawn the financial strength rating (FSR) of ‘A’ (Excellent) and issuer credit ratings (ICR) of “a” of Harleysville-Atlantic Insurance Company, which is based in Atlanta, and Harleysville Insurance Company of Ohio, following their December 31, 2011 merger with and into Harleysville Worcester Insurance Company.
Best said the rating actions follow its confirmation that both Harleysville-Atlantic and Harleysville Ohio have been merged into Harleysville Worcester, a subsidiary of Harleysville Group, Inc. (HGIC). “Subsequent to the merger, the surviving entity, Harleysville Worcester, assumed the respective pooling percentage of the merged companies. The operations of Harleysville Worcester remain unchanged post merger with no impact to policyholders. All companies are headquartered in Harleysville, PA, unless otherwise specified.
Best also noted that on September 30, 2011, it had placed the FSR of ‘A’ (Excellent) and ICRs of “a” of Harleysville Mutual Insurance Company and its subsidiaries under review with positive implications reflecting HGIC’s discussions with Nationwide Mutual Insurance Company, ” which Best described as a “significantly larger and higher rated organization, to merge Harleysville Mutual into Nationwide Mutual.”
Best had also placed the FSR of ‘A-‘ (Excellent) and ICR of “a-” of Harleysville Life Insurance Company (Harleysville Life) under review with developing implications. These ratings will remain under review until A.M. Best meets with management and discusses the strategic plan for Harleysville Life going forward.
Source: A.M. Best
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