S&P Affirms, Withdraws Westport Ratings after Merger with Employers Re

January 16, 2008

Standard & Poor’s Ratings Services has affirmed its ‘AA-‘ financial strength rating on Westport Insurance Corp. and then withdrew the rating at the request of management. The outlook had been stable.

“The rating actions on Westport follow the merger announced earlier this month between Westport and Employers Reinsurance Corp. (ERC),” explained S&P credit analyst Laline Carvalho.

S&P also affirmed its ‘AA-‘ counterparty credit and financial strength ratings on ERC based on the company’s core status to the Swiss Re Group. Employers Re was the surviving entity in the merger, but it has assumed the Westport Insurance Corp. name following the merger.

“The merger is in line with Swiss Re’s ongoing initiative to streamline its legal entity structure,” S&P noted.

Source: Standard & Poor’s – www.standardandpoors.com

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