Ratings Recaps: American Modern; Hallmark Group; Erie; AIG (Notes); Selective; Donegal

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A+” (Superior) and the issuer credit ratings (ICR) of “aa-” of American Modern Insurance Group and its P/C members. Best also affirmed the ICR of “a-” and debt ratings of “a-” on senior debt, “bbb+” on subordinated debt and “bbb” on preferred stock of the $150 million shelf registration filed by American Modern’s ultimate parent, The Midland Company. The outlook for all ratings is stable.

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A-” (Excellent) and issuer credit ratings (ICR) of “a-” of Hallmark Insurance Group, based in Fort Worth Texas, and its operating members. Best also affirmed the ICR of “bbb-” of the group’s holding company parent, Hallmark Financial Services, Inc. The outlook for all ratings is stable. Bests said the affirmation of the FSR “reflects Hallmark Group’s excellent risk-adjusted capitalization, improved operating performance and financial flexibility afforded by its parent company.”

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A+” (Superior) and the issuer credit ratings (ICR) of “aa-” of Erie Insurance Group and its P/C members. Best also affirmed the FSR of “A” (Excellent) and the ICR of “a” of Erie’s life/health member, Erie Family Life Insurance Company and the ICR of “a+” of Erie’s publicly traded management company, Erie Indemnity Company. The outlook for all ratings is stable.

Fitch Ratings assigned an “AA-” rating to American International Group’s $750 million series A-4 junior subordinated debentures due May 2077. The outlook is stable.

Fitch Ratings has affirmed the following ratings for Selective Insurance Group: Issuer Default Rating (IDR) “A-” — Senior debt “BBB+” — Junior subordinated debt “BBB.” Fitch also affirmed the “A+” insurer financial strength (IFS) rating of the members of the Selective intercompany pool, and assigned tan “A+” IFS rating to the newest member of the pool, Selective Auto Insurance Company of New Jersey. The rating outlook for all ratings is stable.

A.M. Best Co. has affirmed the financial strength ratings (FSR) of “A” (Excellent) and the issuer credit ratings (ICR) of “a” of the Penn.-based Donegal Insurance Group and its members. Best also affirmed the FSR of “A” (Excellent) and the ICRs of “a” of Peninsula Insurance Group of Salisbury, MD and its members, as well as the ICR of “bbb” of Donegal Group Inc. The outlook for all ratings is stable. Best indicated thath the Group’s “excellent risk-adjusted capitalization, improved operating performance and conservative business strategies, as well as its solid regional presence and well-established agency relationships,” supported the ratings. “The affirmations also acknowledge the Group’s diversified investment portfolio and prudent catastrophe management program.”