A.M. Best Affirms Rating of Valley Forge Life; Removes from Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 4, 2004 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 rating of A (Excellent) of Valley Forge Valley Forge, on the Schuylkill River, SE Pa., NW of Philadelphia. There, during the American Revolution, the main camp of the Continental Army was established (Dec., 1777–June, 1778) under the command of Gen. George Washington. Life Insurance Company (VFL VFl ventricular flutter. ) (Reading, PA). The rating has been removed from under review with developing implications, and a stable outlook has been assigned. This rating action follows the completed acquisition of VFL by Swiss Re Swiss Re is the world’s largest reinsurer, now that it has acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re now operates in more than 30 countries. General Electric owns 8.9% of the firm. Life & Health America Inc. (Stamford, CT), which is ultimately owned by the Swiss 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. Company of Zurich (Swiss Re). The rating considers VFL's profitable operating performance, superior risk-adjusted 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 the implicit support of Swiss Re Life & Health America Inc. Offsetting these items is its limited prospective operating profile whereby no business will be accepted. VFL was acquired as part of Swiss Re's Administrative Reinsurance (Admin Re) business, which consists of the acquisition of closed blocks of life and health insurance, a core business for Swiss Re. Operations of acquired companies are typically integrated with Swiss Re's existing operations, including the administration of these blocks, thus enhancing operational efficiencies and performance. With an expected reduction in VFL's historical expense structure, earnings should improve and further enhance the company's risk-adjusted capitalization, which is more than adequate for its current rating level. 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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