A.M. Best Co. has commented that the issuer credit rating (ICR) of bb+ of North Pointe Holdings Corporation
A.M. Best Co. has commented that the issuer credit rating (ICR) of "bb+" of North Pointe Holdings Corporation (NPHC) (NASDAQ: NPTE - News) will remain unchanged as a result of the announcement that NPHC has entered into a definitive purchase agreement to acquire Capital City Holding Company, Inc. Additionally, the financial strength rating (FSR) of A- (Excellent) and ICR of "a- " of North Pointe Insurance Company (NPIC) (Southfield, MI) and the FSR of B+ (Good) and ICRs of "bbb-" of NPIC's sister companies, North Pointe Casualty Insurance Company (NPCIC) (Jacksonville, FL) and Home Pointe Insurance Company (HPIC) (Coral Gables, FL) remain unchanged as well. The outlook for all ratings remains stable.
The announced purchase includes Capital City Insurance Company (Capital City) and certain of its affiliates including agency, loss control and premium audit operations. The deal provides NPHC with geographic and product line diversification considering Capital City's mature, niche book of specialty commercial business in the forestry and logging markets, predominantly covering the workers' compensation line of business. The financing of the acquisition contemplates NPHC securing additional bank debt. As such, NPHC's financial leverage will increase but will remain at a manageable level.
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Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.
Source: OLDWICK, N.J.--(BUSINESS WIRE)-- | Published on May 17, 2007
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