A.M. Best Downgrades Ratings of Vantapro Specialty Insurance Company and Places Under Review

  
    
  
  
    
      A.M. Best Co. has downgraded the financial strength rating (FSR) 
      to A- (Excellent) from A (Excellent) and issuer credit rating (ICR) to “a-” 
      from “a” of Vantapro 
      Specialty Insurance Company (Vantapro) (Chicago, IL) (formerly 
      Midway Insurance Company of Illinois) (Midway). The ratings have been 
      placed under review with negative implications.
    
    
      Vantapro’s ratings were based upon a 100% 
      reinsurance cession to its former parent, Fireman’s 
      Fund Insurance Company (FFIC) (Novato, CA). In connection with the 
      acquisition of Midway by Darwin National Assurance Company (DNA), 
      the lead member of the Darwin Group (Darwin), which is rated A- 
      (Excellent), FFIC reinsured and indemnified Midway from all remaining 
      liabilities and obligations as of November 30, 2007. Midway had not 
      written new and renewal premiums since 2002. In February 2008, Midway 
      was renamed Vantapro Specialty Insurance Company.
    
    
      The management of Darwin Professional Underwriters, Inc. 
      (Wilmington, DE) (NYSE: DR), the publicly traded parent of Darwin, has 
      filed for regulatory approval to redomesticate Vantapro to Arkansas from 
      Illinois, and shortly thereafter, management plans to implement a 
      reinsurance agreement between DNA and Vantapro, similar to the 
      reinsurance agreement currently in place between DNA and its other 
      wholly owned subsidiary, Darwin Select Insurance Company. Once 
      the reinsurance agreement has been approved and implemented, A.M. Best 
      will likely affirm and remove the ratings from under review.
    
    
      Management is seeking to obtain additional license approvals for 
      Vantapro in a number of states to enhance distribution flexibility for 
      Darwin’s products. Vantapro will be available 
      to offer coverage in situations where other Darwin insurance companies 
      cannot due to its existing program relationships or other contractual 
      constraints.
    
    
      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.