A.M. Best Places Ratings of Optima Insurance Company Under Review with Positive Implications

A.M. Best Co. has placed under review with positive
implications the financial strength rating of B++ (Good) and issuer
credit rating of bbb of Optima Insurance Company (Optima) (San
Juan, PR), following the recent announcement that a subsidiary of
QBE Insurance Group Limited (QBE) (Sydney, Australia) has agreed to
acquire Optima Insurance Group, Inc., the parent company of Optima.
The under review with positive implications status reflects
confirmation of an executed stock purchase agreement between the
parties, and that 100% of the stock of Puerto Rico-based Optima
Insurance Group, Inc. and its wholly owned subsidiary, Optima, will
be acquired by QBE through QBE Latin America Insurance Holdings,
S.L. QBE also acquired an affiliated agency, Colonial Insurance
Agency, through which Optima derives approximately 85% of its
written premium. Additionally, QBE purchased New Century Finance
Corp, a premium finance agency. Neither of these entities is owned
by Optima Insurance Group, Inc., however; they are owned by common
stockholders of Optima. While the agreement remains subject to
regulatory approval, both parties anticipate the transaction to
close during the first quarter of 2012. The ratings will remain
under review with positive implications pending regulatory
approval, the completion of a planned intercompany quota share
agreement provided by the QBE organization and additional
discussions with the new ownership to determine Optimas strategic
fit within QBE, a much larger, more diversified organization. The
principal methodology used in determining these ratings is Bests
Credit Rating Methodology -- Global Life and Non-Life Insurance
Edition, which provides a comprehensive explanation of A.M. Bests
rating process and highlights the different rating criteria
employed. Additional key criteria utilized include: Risk Management
and the Rating Process for Insurance Companies; Understanding BCAR
for Property/Casualty Insurers; A.M. Bests Ratings The Treatment of
Debt; Equity Credit for Hybrid Securities; and Natural Catastrophe
Stress Test Methodology. Methodologies can be found at
www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best
Company is the worlds oldest and most authoritative insurance
rating and information source. For more information, visit
www.ambest.com. Copyright 2012 by A.M. Best Company, Inc. ALL
RIGHTS RESERVED.