Acquisition puts Citadel under review

A.M. Best Co. recently placed the financial strength rating of The Citadel General Assurance Company (B++/Very Good) under review with developing implications. This rating action is in response to the recent announcement that AXA Canada Inc. will acquire Citadel from Winterthur Swiss Insurance Company, a subsidiary of Credit Suisse. The acquisition of Citadel P&C insurer that specializes in accident and sickness insurance is estimated to cost from $305 million to $310 million, a sale that would place AXA Canada within the top six private insurers in Canada based on 2004 direct premiums written.