(December 5 – 16:55 ET) – Queensway Financial Holdings Ltd. says that A.M. Best Company has downgraded the financial strength rating of the following Queensway insurance subsidiaries to B (Fair): North Pointe Insurance Co., North Pointe Insurance Co. of Illinois, Hermitage Insurance Co., Kodiak Insurance Co., Consolidated Property and Casualty Insurance Co. and Coachman Insurance Co.

The ratings have been placed under review with developing implications. In addition, the B+ rating of Atlantic Alliance Fidelity and Surety Co. has been placed under review with developing implications. The rating has not been downgraded due to the pending sale of Atlantic Alliance, which remains subject to regulatory approval and other customary closing conditions.

A.M. Best’s rating action was not precipitated by any change in the financial condition or profitability of these subsidiaries, but rather as a result of concerns regarding Queensway’s debt structure.

A.M. Best has advised that it will continue to review the developments at Queensway and, should Queensway secure the necessary financing for its debt restructuring, will consider reinstating secure ratings on these subsidiaries.
-IE Staff