A.M. Best Affirms A+ Rating Of Allstate Insurance Group.OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 8, 1999-- A.M. Best Co. today affirmed the A+ (Superior) rating of Allstate Insurance Group, Northbrook, Ill. The rating applies to Allstate Insurance Co. and its five reinsured subsidiaries and is based on their consolidation with two separately rated subsidiaries--Allstate Floridian Insurance Co. and Allstate New Jersey Insurance Co. It reflects the group's superior financial strength, favorable operating performance and highly focused personal lines market presence. These positive factors are derived from Allstate's outstanding national franchise, well-recognized brand, conservative catastrophe mitigation strategies and strong operating fundamentals. Allstate's underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance and operating returns have been excellent, and internal capital generation has been strong, despite ongoing catastrophe losses and heightening height·en v. height·ened, height·en·ing, height·ens v.tr. 1. To raise or increase the quantity or degree of; intensify. 2. To make high or higher; raise. v.intr. market competition. Allstate also benefits from the scale and breadth of a nationally integrated claims operation that is being further streamlined. Allstate's dominant U.S. market share of 12% in the personal lines segment should be bolstered by its initiatives to provide value-added customer service and broaden its product and distribution channels. These initiatives are intended to help Allstate compete with aggressive low-cost direct-marketing insurers. Allstate's recent acquisition of the personal lines business of Chicago-based insurer CNA (Certified NetWare Administrator) See Novell certification. accelerates its market expansion into the independent agency distribution channel, with Allstate ranking as the nation's third-largest insurer in that channel. Since Hurricane Andrew This article is about the 1992 hurricane; there was also a Tropical Storm Andrew during the 1986 Atlantic hurricane season. Hurricane Andrew is the second-most-destructive hurricane in U.S. history, and the last of three Category 5 hurricanes that made U.S. in 1992, Allstate has honed its catastrophe-management strategies and has cut its exposures, particularly in Florida. Allstate's rating reflects tremendous financial flexibility at the holding company through available lines of credit, historical access to capital markets and a $1 billion commercial paper program. Offsetting these positive rating factors are intensifying personal lines competition, margin compression, moderating business growth from its captive-agency force, earnings susceptibility to more frequent catastrophe- and weather-related losses and the challenge of integrating CNA's underperforming personal lines book. In 1999, Allstate's underwriting profits Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. have declined as a result of industry-wide price cuts in personal auto, increased auto claim severity, less favorable property results and lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. asbestos reserve development from prior years. Advertising spending also has increased to reinvigorate re·in·vig·o·rate tr.v. re·in·vig·o·rat·ed, re·in·vig·o·rat·ing, re·in·vig·o·rates To give new life or energy to. re and leverage its long-standing brand as "The Good Hands" company. A.M. Best believes Allstate will achieve improved growth and long-term profitability through its various initiatives. Accordingly, its rating outlook is stable. Separately, A.M. Best affirmed the ratings of Allstate's life subsidiaries: Allstate Life Insurance Co., Allstate Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Lincoln Benefit Life Co., Northbrook Life Insurance Co., Glenbrook Life & Annuity Co., Sears Life Insurance Co. and Surety Life Insurance Co., at A+. Further the following companies had their ratings removed from under review and affirmed: American Heritage American Heritage can refer to:
n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. State Life Insurance Co., at B+. A.M. Best Co., established in 1899, is the world's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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