Fitch Upgrades Ratings of Encompass Companies

Fitch Ratings has upgraded the insurer financial strength ratings of the Encompass companies to ‘AA+’ from ‘A-‘(see below for a complete listing). The Rating Outlook is Stable.

The upgrade reflects Allstate’s acquisition of the Encompass companies from CNA Financial Corp. Allstate had been servicing and reinsuring the business from the Encompass companies as part of CNA’s exit from the personal lines business in 1999. Allstate exercised its option within the agreement to purchase the Encompass companies in October 2005.

The Encompass companies provided Allstate access to the independent agent distribution channel, which represents a core strategy for Allstate. The assigning of Allstate’s property/casualty group financial strength rating to the Encompass companies is supported by the reinsurance protection provided by Allstate Insurance Co. as well as the general integration of Encompass’s operations into Allstate.

Fitch upgraded the following ratings with a Stable Outlook today:

Encompass Home and Auto Insurance Co.

Encompass Independent Insurance Co.

Encompass Insurance Company of America

Encompass Insurance Company of Massachusetts

Encompass Property and Casualty Co.

— Insurer financial Strength rating to ‘AA+’ from ‘A-‘.

Fitch’s rating definitions and the terms of use of such ratings are available on the agency’s public site, Published ratings, criteria and methodologies are available from this site, at all times. Fitch’s code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the ‘Code of Conduct’ section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.