A.M. Best Affirms Rating of the Ohio Casualty Group Subsidiaries; Assigns Initial Debt Rating.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 6, 2002 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and assigned a positive outlook for the subsidiaries of the Ohio Casualty Group [OCG OCG Oesterreichische Computer Gesellschaft (Vienna, Austria) OCG Operational Coordination Group OCG Overall Coordination Group OCG Operations Control Group OCG OC Group (internet business management corporation) ] (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : OCAS OCAS abbr. Organization of Central American States OCAS n abbr (= Organization of Central American States) → ODECA f OCAS n abbr (= ) (Cincinnati, OH). Additionally, A.M. Best has assigned an initial debt rating of "bbb" to Ohio Casualty Corporation's Convertible Notes issuance of March 19, 2002. The notes carry a 5% interest rate and are convertible into 44.2112 common shares per $1,000 principal amount of the notes. This is equivalent to an initial conversion price of $22.62 per share. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of the notes were used to eliminate debt under the company's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The Ohio Casualty Corporation is an insurance holding company that consists of The Ohio Casualty Insurance Company and five operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . The positive outlook is based on the group's excellent capitalization, improved 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 and well-established market presence as a top 40 writer of commercial and personal lines insurance. The "Excellent" rating is supported by OCG's diversified product offerings and geographic spread of risk, strong brand name recognition as well as its long-standing relationship with its independent agency distribution force. In the first quarter of 2001, a new management team was engaged, which has been proactive in the implementation of numerous initiatives aimed at returning OCG to operating profitability. At the forefront of management's strategy is an aggressive expense containment policy, which directly affects all areas of OCG. The group is reviewing and re-underwriting all unprofitable products, increasing rates and strengthening underwriting guidelines. The financial strength rating of A- (Excellent) has been affirmed for the following subsidiaries of the Ohio Casualty Group: - Ohio Casualty Insurance Company - American Fire and Casualty Company - Avomark Insurance Company - Ohio Security Insurance Company - West American Insurance Company The following initial debt rating has been assigned: Ohio Casualty Corporation-- -- "bbb" to convertible notes issuance of March 19, 2002 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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