S&P affirmed its “AA” counterparty credit and financial strength ratings on Old Republic Mercantile Insurance Co., and has subsequently withdrawn the ratings at the company’s request. The ratings withdrawal does not affect the ratings on Mercantile’s parent company, Old Republic International Corp. (ORI; A+/Stable/A-1), or any of Mercantile’s rated affiliates, according to S&P.
Mercantile is a very small internal reinsurer, which assumes business from its affiliate Old Republic Insurance Co. (ORINSCO). Mercantile’s plans are to commute all outstanding reserves and obligations back to ORINSCO July 1, 2004, and cease operations at that point. Subsequent to the commutation, company management plans to merge Mercantile with another ORI affiliate, sell the shell to an outside third party, or completely dissolve the company.
Was this article valuable?
Here are more articles you may enjoy.
Mustard Maker Caught Pumping Pollutants Into River for Years and Lying About It 
Carnival Cruise Passenger Served 14 Shots Awarded $300,000 After Fall Down Stairs 
Florida Needs More – Much More – Wind Mitigation, Say Experts at OIR Summit 
Hedge Fund Money Is Reshaping a 180-Year-Old Insurance Model From This Issue
