|[January 30, 2013]
A.M. Best Comments on the Ratings of Merced Mutual Insurance Company
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has commented that the financial strength rating of
A- (Excellent) and issuer credit rating of "a-" of Merced Mutual
Insurance Company (Merced Mutual) (Atwater, CA (News - Alert)) are unchanged. The
outlook for both ratings is stable.
This commentary is based on the proposed transaction between Merced
Mutual and United Heritage Financial Group, Inc. (UHFG). A.M.
Best does not anticipate that the sale of Merced Mutual will result in a
material change in its risk-adjusted capitalization or operating
performance. The management of Merced Mutual is expected to remain
intact with the buyer appointing one additional director. The
transaction is expected to close by the second quarter of 201, pending
policyholder and regulatory approvals.
Currently, UHFG consists of United Heritage Life Insurance Company,
United Heritage Property & Casualty Company (both domiciled
in Meridian, ID) and Sublimity Insurance Company (Sublimity, OR).
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.
Founded in 1899, 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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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