A.M. Best Affirms Great States Insurance Following Acquisition Announcement.OLDWICK, N.J.--(BUSINESS WIRE)--July 8, 1998--A.M. Best Co. today affirmed its "B+" (Very Good) rating on Great States Insurance Co., following the recent announcement that HIH HIH abbr. Her (or His) Imperial Highness Winterthur International Holdings has agreed to acquire all of Great States' outstanding stock from PacifiCareHealth Systems Inc. This affirmation reflects A.M. Best's expectation that the company's financial position will not be materially affected by the transaction. The transaction is expected to close in the fourth quarter. Great States' rating reflects the company's good capitalization, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. liquidity and conservative investment portfolio. Great States' 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 has deteriorated significantly over the past few years, reflecting the impact of competition and rate reductions in California. To improve its results, the company has withdrawn from the unprofitable California workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. market, effective January 1998. Most of the company's 1998 business will be written in Arizona. In the longterm, A.M. Best expects the company to benefit from its new affiliations, as its parent has experience in managing workers' compensation entities and is committed to supporting Great States' insurance operations. The company also should benefit from the expense savings due to the administrative integration with its new affiliate, HIH America Compensation & Liability Co., which is rated "A-" (Excellent) and also specializes in the workers' compensation market. HIH America will manage Great States' operation. HIH America's ratings are unaffected by the announcement. HIH Winterthur is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. the Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. . HIH Winterthur is 51% owned by Winterthur Holdings Australia Limited, which is ultimately 100% owned by the Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Group. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.
CONTACT: Jeffrey Dunsavage
908/439-2200, ext. 5618
dunsavj@ambest.com
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion