Ratings Roundup Philadelphia Consolidated, PURE

August 11, 2008

A.M. Best Co. has commented that the issuer credit rating (ICR) of “a-” of Philadelphia Consolidated Holding Corp. of Bala Cynwyd, PA is unchanged as a result of the recent announcement that Japan’s Tokio Marine Holdings, Inc. has entered into a definitive agreement to acquire Philadelphia Consolidated. Best also said that the financial strength rating (FSR) of ‘A+’ (Superior) and ICRs of “aa-“of Philadelphia Insurance Companies and its members and FSR of ‘A-‘ (Excellent) and ICRs of “a-” of Liberty American Insurance Group and its members are unchanged. Philadelphia Consolidated is the parent holding company of Philadelphia Insurance and Liberty American. The outlook for all ratings is stable. “The announced acquisition stipulates that Tokio Marine would acquire all outstanding shares of Philadelphia Consolidated for $61.50 per share, in cash,” Best continued. “The total transaction value is approximately $4.7 billion. The actual purchase would be made through Tokio Marine’s wholly owned subsidiary, Tokio Marine & Nichido Fire Insurance Co. Ltd. ” Best also noted that when the acquisition is completed, “Philadelphia Consolidated is expected to be delisted and its ICR withdrawn. The acquisition is expected to close in fourth quarter 2008 and is subject to the customary regulatory approvals.”

A.M. Best Co. has assigned a financial strength rating (FSR) of ‘A-‘ (Excellent) and issuer credit ratings (ICR) of “a-” to The PURE Group of Insurance Companies and its members: Privilege Underwriters Reciprocal Exchange and PURE Insurance Company. All companies are domiciled in Fort Lauderdale, FL. The outlook for the ratings is stable. “The ratings reflect PURE’s solid risk-adjusted capitalization, moderate operating leverage measures currently maintained and anticipated in its business plan, prudent reinsurance programs and management’s previous successful history in the niche of high net worth personal lines clients,” Best noted. “The ratings also contemplate the additional financial flexibility afforded PURE through its parent company with multiple investor sources, as well as the growing positive impact of surplus contributions from PURE subscribers.”

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