OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Besthas downgraded the financial strength ratings to B++
(Good) from A (Excellent) and the issuer credit ratings to “bbb” from
“a” and placed the ratings under review with negative implications for Companion
Property and Casualty Insurance Company, and its subsidiaries, Companion
Commercial Insurance Companyand Companion Specialty Insurance
Company (District of Columbia), collectively referred to as Companion
Property and Casualty Group, which are ultimately owned by Blue
Cross and Blue Shield of South Carolina (BCBSSC). All companies are
domiciled in Columbia, SC, unless otherwise specified.
These rating actions follow the disclosure that BCBSSC has entered into
a definitive agreement to sell Companion Property and Casualty Group to Enstar
Group Limited (Enstar). The downgrade and under review with negative
implications status reflects the deterioration in the group’s
risk-adjusted capitalization that has occurred through the second
quarter of 2014, as well as the removal of rating enhancement that was
afforded group members as a result of the explicit and implicit support
provided by BCBSSC. Enstar and its Torus subsidiaries are assessing
opportunities for policy renewals of Companion business into Torus or
other non-affiliated insurers and expect to operate the orderly run-off
of the historical reserves largely within its property/casualty legacy
business. The ratings of BCBSSC remain unchanged as the company
continues to report favorable operating and net income trends on its
core health business, earnings diversification and strong risk-adjusted
The ratings will remain under review until the transaction is closed.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
Michael Russo–P/C, 908-439-2200, ext. 5372
Afriyie–L/H, 908-439-2200, ext. 5203
Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Source: A.M. Best