A.M. Best Affirms Financial Strength Ratings of American United Life and Its Affiliates and Affirms Debt Rating of OneAmerica Financial Partners.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength ratings of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of United Life Insurance Company (AUL) (Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. , IN) and its related affiliates. Concurrently, A.M. Best has affirmed the debt rating of "a-" on $75 million 7.75% of surplus notes of AUL and its issuer credit rating of "a+". A.M. Best has also affirmed the long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. rating of "bbb+" on $200 million 7.00% senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes issued by OneAmerica Financial Partners (Indianapolis, IN), an intermediate holding company. (Please see list below.) The outlook for all ratings remains stable. These ratings reflect the organization's established niche position in its core pension line of business, its strong risk-adjusted capital position, conservative investment portfolio and diversified diversified (di·verˑ·s sources of earnings and revenue. A.M. Best believes the organization's risk profile has improved and its earnings volatility was reduced following its exit from its reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. line of business in 2002. The organization's debt-to-total capital at approximately 20% and its interest coverage ratio of four-five times are within A.M. Best's expectations for these ratings. Offsetting these strengths are competitive pressures in the organization's core operating divisions and the need to effectively deploy its excess capital. State Life Insurance Company (State Life) (Indianapolis, IN) has a strategic affiliation with AUL that began by means of a strategic alliance agreement in 1994. State Life is proposing to join the American United Mutual Insurance Holding Company (AUMIHC) by reorganizing as a stock insurance company subsidiary of AUMIHC. This is the same procedure that AUL and its other affiliate, Pioneer Mutual Life Insurance Company (North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). ) followed in 2000 and 2002, respectively. The financial strength ratings of A (Excellent) have been affirmed with a stable outlook for American United Life Insurance Company and its following affiliates: --Pioneer Mutual Life Insurance Company --State Life Insurance Company The financial strength rating of A- (Excellent) has been affirmed with a stable outlook for Cherokee National Life Insurance Company. AUL's issuer credit rating of "a+" has been affirmed with a stable outlook. The following debt ratings have been affirmed with stable outlooks: American United Life Insurance Company-- --"a-" on $75 million 7.75% surplus notes, due 2026 OneAmerica Financial Partners Inc.-- --"bbb+" on $200 million 7.00% senior unsecured notes, due 2033 For a complete list of A.M. Best's Debt Ratings, please visit http://www.ambest.com/debtratings/. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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