Oldwick, N.J.-based insurance rating service A.M. Best Co. has downgraded Royal & Sun Alliance USA. and its affiliates, and removed them from rating at the company's request.
Best said it lowered the financial strength ratings to "C-plus (Marginal)" from "C-double-plus (Marginal)," and the issuer credit ratings to "b-minus" from "b" for the Royal & Sun Alliance USA Insurance Pool and its members, including the life insurance division.
On March 3, Royal & Sun Alliance USA's name was changed to Arrowpoint Capital Pool, based in Wilmington, Del., after a management buyout. The ratings were removed at the request of the new company.
The Arrowpoint Pool includes Royal Indemnity Company and Security Insurance Company of Hartford. Best said these two companies, along with the life company, have been in run-off since 2003.
As part of the transaction, the former United Kingdom parent contributed $287.5 million in additional capital to the group.
Arrowpoint Capital acquired the U.S. operations for $300 million in deferred consideration. Payment will be based on the future performance of the run-off, Best said.
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