Reliance Deal Off - AM Best Downgrades

A.M. Best reported that Leucadia National Corp. cancelled the $292.7 million purchase of Reliance Group Holdings Inc. based on the terms that were originally negotiated. They are discussing possible alternatives. In a joint press release, Leucadia said a new deal isn't certain though. Leucadia could still exercise its existing termination right by July 21. Coincidentally, A.M. Best Co. downgraded the financial strength rating of Reliance Insurance Group to B (Fair) from B++ (Very Good). The rating remains 'under review with developing implications.' The rating applies to the group's 1...