A.M. Best Affirms Jefferson Pilot Corporation's Financial Strength and Debt Ratings.Business & Insurance Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 6, 2001 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 "aa" senior debt rating of Jefferson Jefferson, uninc. city (1990 pop. 25,782), Fairfax co., N Va. It is a residential suburb of Washington, D.C. Pilot Corporation (JPC JPC Joint Parliamentary Committee (India) JPC John Paul College (Queensland, Australia) JPC Joint Propulsion Conference JPC Joint Planning Committee JPC Jpeg-2000 Code stream ), Greensboro, North Carolina “Greensboro” redirects here. For other uses, see Greensboro (disambiguation). Greensboro, North Carolina (IPA: [ɡɹiːnsbʌɹəʊ]) is a city in the U.S. state of North Carolina. , the "a+" rating of its Capital Securities and its commercial paper rating of AMB-1+. The A++ (Superior) financial strength ratings of the group's life insurance subsidiaries were also affirmed. The ratings reflect Jefferson-Pilot's ample fixed charge coverage, sound capital management, diverse and sustainable earnings, strong capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and high-quality investment portfolio. Financial flexibility is excellent due to conservative financial leverage, exceptionally strong coverage and high, stable earnings. Innovative capital management has minimized debt service payments. Moderate financial leverage at the holding company and efficient management to minimize the cost of borrowed funds, when combined with strong and consistent earnings, provides a high level of coverage. JPC's major strength is its ability to produce consistently strong earnings, effected through the practice of strong 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. discipline, strategically well-selected acquisitions and their subsequent integration. Despite the payment of regular dividends to the parent, the operating companies' earnings continue to augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: statutory capital. Notwithstanding these accomplishments, the company continues to face the challenges an increasingly competitive environment poses to achieving revenue and earnings growth in core individual life and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. lines. JPC's acquisition activity over the last few years has been the predominant pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. driver of growth. Sales growth through the company's traditional life and annuity lines has been modest in keeping with industry norm. While the company has been successful in introducing variable products throughout its various distribution platforms, it has yet to achieve scale. A recent initiative directed at improving distribution relationships to capture increasing portions of independent distributors' business is expected to stimulate sales. Jefferson-Pilot Corp. is a publicly traded holding company engaged in the insurance and communications businesses. Through its insurance subsidiaries, the company offers a broad portfolio of individual and group life products, as well as annuity and investment products. Jefferson-Pilot Communications Co. owns and operates television and radio broadcast properties and produces syndicated sports and entertainment programming. As of year-end 2000, the company reported consolidated assets and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $27.3 billion and $3.2 billion, respectively. The following debt ratings have been affirmed: -- Jefferson-Pilot Corp.-- Mandatorily Exchangeable Debt Securities (MEDS)--"aa" rating on senior debt, $75 million at 6.65%, due January 2002 -- Jefferson-Pilot Corp.-- Mandatorily Exchangeable Debt Securities (MEDS)--"aa" rating on senior debt, $75 million at 6.95%, due January 2002 -- Jefferson-Pilot Capital Trust A-- Capital Securities Series A, backed by junior subordinated debentures--"aa-" rating on $200 million 8.14%, due January 2046 -- Jefferson-Pilot Capital Trust B-- Capital Securities Series B, backed by junior subordinated debentures--"aa-" rating on $100 million at 8.285%, due March 2046 -- Jefferson-Pilot Corp.-- Commercial Paper rating of AMB-1+ The A++ (Superior) financial strength ratings of the following Jefferson-Pilot Corp. members have been affirmed: -- Jefferson-Pilot Life Insurance Co. -- Jefferson Pilot Financial Insurance Co. -- Jefferson Pilot LifeAmerica Insurance Co. 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 www.ambest.com. |
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