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The financial strength rating of Reliance Insurance Group was downgraded from ‘A-‘ to ‘B++’ by A.M. Best Co. The rating action followed an evaluation of the group’s worse-than-expected first quarter underwriting results and unfavorable operating trends and applies to the group’s 13 domestic members, led by Reliance Insurance Co.

The group’s rating remains under review pending the finalization of the purchase agreement between Leucadia National Corp. and Reliance Group Holdings Inc. Best indicated that if the Leucadia transaction closes successfully, Reliance’s rating will stabilize in the ‘Very Good’ range. However, if the transaction is not completed in a timely manner and satisfactory arrangements for debt refinancing are not made, Best said it would expect to further downgrade Reliance’s rating.