A.M. Best Comments on Ratings of Allied World Assurance Company Holdings, Ltd. and Its Subsidiaries


OLDWICK, N.J. – (Business Wire) A.M. Best Co. has commented that the ratings of Allied World Assurance Company Holdings, Ltd (Allied World) (Bermuda) [NYSE: AWH] and its subsidiaries remain unchanged following the recent announcement that the company has entered into a definitive agreement to acquire Darwin Professional Underwriters, Inc. (Darwin) (Wilmington, DE) [NYSE: DR].

The transaction is expected to close in fourth quarter 2008, subject to regulatory approval. Allied World plans on financing the deal, valued at $550 million, through a combination of excess capital and a new security issuance. Absent the security issuance, Allied World has sufficient capital to fund the entire transaction.

The acquisition of Darwin accelerates Allied World’s expansion of its U.S. insurance platform. The transaction provides Allied World with profitable books of business in both healthcare and professional liability. Furthermore, Darwin’s book of business will allow Allied World greater access to small and mid-size accounts.

Partially offsetting the positive attributes of the acquisition is the execution and integration risk associated with the transaction. In addition, the general casualty market has been experiencing softening market conditions, and downward pricing pressures have been prevalent.

For current Best’s Ratings, independent data and analysis on more than 330 reinsurance companies, please visit www.ambest.com/reinsurance.

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 http://www.ambest.com/.

see original

Copyright © 2008 Business Wire. All rights reserved.

You may also like

Legislative panel approves medical malpractice bill
Read more
Urgent-care centers: Illinois numbers grow as time-pressed families seek low-cost option to ERs
Read more
Global Center for Medical Innovation launches
Read more

Recent Posts

California Healthcare Providers, Trial Attorneys, Legislators Reach Deal to Increase MICRA Cap

Corporate Acquisitions Accelerating Surge in Employed Physicians

AM Best Maintains Negative Outlook for MPL Segment in 2022, Cites Rising Loss Costs, Increasing Severity, Diminished Reserves

Popular Posts

2022 Medical Malpractice Insurance Rates: What the data tells us

Arizona Court Decisions Affirm Two Medical Professional Liability Reform Laws

Global Center for Medical Innovation launches

Start Your Custom Quote Process™

Request a free quote