White Plains, N.Y.-based Hermitage Insurance Co. had a pair of its ratings upgraded by A.M. Best, with the ratings service citing the firm’s recent acquisition by the Tower Group.

A.M. Best upgraded Hermitage’s financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to “a-” from “bbb+,” also noting that the outlook for these ratings was revised to stable from positive.

The ratings service also revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb+” of Kodiak Insurance Co. of Trenton, N.J.

In February, Tower Group, Inc., located in New York, N.Y., closed the acquisition of HIG, Inc., the holding company that owns Hermitage and Kodiak.

A.M. Best said in a statement that its ratings actions reflect Hermitage’s participation in the Tower Group Companies’ pool effective April 1. Hermitage maintains supportive risk-adjusted capitalization, and its operating performance has been strong over the most recent five-year period, the ratings service said.

The revised outlook of Kodiak reflects A.M. Best’s expectation that it will become a member of the Tower Group Companies pool or receive affiliated reinsurance support.

Kodiak’s risk-adjusted capitalization supports its current ratings, and the company’s underwriting results compare favorably to its peer group composite, A.M. Best said.

The ratings service also withdrew the financial strength rating and issuer credit rating for HIG, as it no longer exists and its members are now part of Tower.