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A.M. Best Withdraws Ratings of American Feed Industry
Insurance Company CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., July 1, 2009—A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of American Feed Industry Insurance Company Risk Retention Group, Inc. (AFIIC) (Des Moines, IA). The outlook for both ratings is stable.. Concurrently, A.M. Best has withdrawn the ratings at the company’s request and assigned a category NR-4 to the FSR and an “nr” to the ICR, which will be effective July 1, 2009. The ratings reflect AFIIC’s excellent capitalization, improved operating performance, historically low loss ratios. AFIIC has maintained consistent earnings and surplus levels over the last five years and adheres to a very conservative investment strategy. The ratings further reflect the company’s proven underwriting expertise in its niche marketplace. Historically, AFIIC has written primary and excess product and general liability coverages for the animal feed industry. In light of current insurance market conditions and the availability of liability insurance coverage in the commercial insurance marketplace, AFIIC’s Board of Directors and shareholders have voted to discontinue writing or renewing insurance policies. Subsequently, the company has presented a voluntary run-off plan to the Iowa Division of Insurance. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. ### |
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