A.M. Best Affirms Ratings of American European Insurance Group; Upgrades Ratings...

A.M. Best Affirms Ratings of American European Insurance Group; Upgrades Ratings of Rutgers Casualty Insurance Company

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of
B+ (Good) and issuer credit ratings (ICR) of "bbb-" of American
European Insurance Group and its member, American European Insurance
Company (American European) (formerly Merchants Insurance Company of
New Hampshire, Inc.). Concurrently, A.M. Best has upgraded the FSR to
B+ (Good) from B- (Fair) and ICR to "bbb-" from "bb-" of Rutgers
Casualty Insurance Company (Rutgers Casualty), following the inclusion
of the company in the American European Insurance Group. A.M. Best
also has withdrawn the FSR of B- (Fair) and ICR of "bb-" of Rutgers
Casualty Insurance Group. These rating withdrawals are due to Rutgers
Casualty being included in American European Insurance Group. All
companies are headquartered in Cherry Hill, NJ. The outlook for all
ratings is stable.

The rating affirmations of American European Insurance Group are
based on its favorable capitalization, moderate operating
profitability and regional market knowledge. These positive rating
factors are partially offset by significant execution risk in the
management and integration of American European on a going forward
basis, following its March 30, 2007 purchase by American European
Group, Inc.

The rating upgrades of Rutgers Casualty are based on its improved
risk-adjusted capitalization and operating performance, following the
completion of its pooling agreement with American European,
retroactive to January 1, 2008. Based on the completion of the pooling
agreement, Rutgers Casualty has become a member of American European
Insurance Group and receives the group ratings along with American
European.

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.

Analysts
Kenneth Tappen, 908-439-2200, ext. 5248
kenneth.tappen@ambest.com
or
Jeffrey Mango, CPA, 908-439-2200, ext. 5204
jeffrey.mango@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2008