A.M. Best Affirms Rating of Optimum General, Inc.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 24, 2002 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 B (Fair) of the insurance subsidiaries of Optimum General Inc. The affected companies include Optimum Insurance Company, Optimum Farm Insurance Company, Optimum Frontier Insurance Company, Optimum West Insurance Company and Optimum Property and Casualty Insurance Company. A.M. Best has also assigned a negative outlook. The ratings reflect the continued weak operating results and the strain that losses have placed on the individual companies' capital position. The individual companies' current level of 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. is marginally able to support its various risks, based on A.M. Best's assessment of capital adequacy. In 2001, unfavorable results were driven by difficult market conditions in Canada and losses in its Ontario, Texas and Atlantic operations. Management has implemented a strategy to improve the overall operations. These corrective actions A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or include rate increases and more stringent 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. and claims handling guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , including the non-renewal and re-underwriting of certain business segments. Moreover, in Atlantic Canada, Optimum recently announced that it has immediately discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the writing of new insurance business and is non-renewing policies as of July 1, 2002. Despite the actions taken by management, continued uncertainties related to future profitability and capital position remain. Further, these plans will require time and should the company not execute a plan or combination of plans to adequately bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz its capital position in the near term, A.M. Best will take further rating action. Accordingly, the rating outlook is negative. 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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