Moody’s withdraws ratings on Symons International Group

Rating agency Moody’s Investors Service has withdrawn its ratings on Symons International Group Inc. and its subsidiaries. The rater notes that interest payments on the company’s trust preferred securities have been in deferral since February, 2000. Those securities had been dropped to a “C” rating by Moody’s.At this point, all of the subsidiaries of Symons are either in run-off or receivership. The subsidiaries include: Pafco General Insurance Co. (not to be confused with Markham-based Pembridge’s Pafco brand), Superior Insurance Co., Superior American Insurance Co., Superior Guaranty Insurance Co., and IGF Insurance Co.The companies were 7.38% owned by Goran Capital Inc., which saw trading in its shares suspended by the Toronto Stock Exchange in early March. The company last reported results in the first quarter of 2003, and at the time had run afoul of U.S. regulators in several states who had placed orders of rehabilitation on its subsidiaries due to the company’s dire financial straits.First quarter 2003 saw the company post a net loss of $3.6 million. Moody’s notes that the company’s shareholder deficit at that time was US$185 million. In November 2003, Goran’s independent accountant, BDO Seidman, resigned as a result of a dispute over the company’s loss reserves following an actuarial review.