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A.M. Best Revises Outlook to Negative for General Fidelity Insurance Company

The ratings reflect GFIC's adequate capitalization, as well as management's intent to adhere to strict claims and reserving fundamentals as the business runs off.

These positive rating factors are partially offset by the recent marked adverse development and subsequent strengthening in almost every line of business, as weaknesses in the company's underwriting and claims platform surfaced. Management decided to place the company's book of business into run off as of December 31, 2009.

The rating outlook is based upon the uncertainty surrounding reserves as the business runs off, as well as the possibility of the company's sale in the future.

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

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

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.

A.M. Best Co.
Analysts
Joel Silverthorn, 908-439-2200, ext. 5120
joel.silverthorn@ambest.com
or
Gary Davis, 908-439-2200, ext. 5665
gary.davis@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