A.M. Best Downgrades and Withdraws Ratings of FFG Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has downgraded the financial strength rating (FSR) to B+ (Good) from A- (Excellent) and the issuer credit rating (ICR) to “bbb-” from “a-” of FFG Insurance Company (FFG) (Dallas, TX). The outlook for all ratings is stable. Subsequently, A.M. Best has withdrawn all ratings and assigned a category NR-3 (Rating Procedure Inapplicable) to FFG as it has been effectively in run off since November 30, 2006.

Published on January 21, 2008

The downgrades reflect the deterioration in FFG’s risk-adjusted capitalization as a result of its 2007 operating loss and resultant reduction in statutory surplus. The ratings also consider the unlimited guarantee and indemnification provided by FFG’s parent company, Aon Corporation (Aon) (Chicago, IL) (NYSE: AOC - News), to Virginia Surety Company, Inc. for the run off of the FFG reserves.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

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