A.M. Best Affirms Ratings for the Alfa Pool and Alfa Life; Assigns Debt Rating.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 1, 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 rating of A++ (Superior) for the subsidiaries of the Alfa Insurance Pool. Additionally, A.M. Best has affirmed the financial strength rating of A+ (Superior) of Alfa Life Insurance Corporation (Alfa Life). Moreover, the rating of AMB-1+ assigned to Alfa Insurance Corporation's (NYSE NYSE See: New York Stock Exchange : ALFA) commercial paper program has been affirmed, and a debt rating of "aa" has been assigned to the senior debt. Together, Alfa Mutual Insurance Company and Alfa Mutual Fire Insurance Company maintain majority ownership of Alfa at roughly 52.8% and have unconditionally guaranteed Unconditionally Guaranteed is the eighth LP by Captain Beefheart & the Magic Band, originally released in 1974. Upon release it was criticised for being too commercial, however it failed to give Beefheart any real chart success and peaked at #192 on the Billboard all outstanding commercial paper and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. to a maximum of $300 million. All of the companies named above are located in Alabama. These ratings reflect Alfa's outstanding capitalization and consistently strong operating returns. These positive factors are derived from Alfa's firmly entrenched en·trench also in·trench v. en·trenched, en·trench·ing, en·trench·es v.tr. 1. To provide with a trench, especially for the purpose of fortifying or defending. 2. personal lines market position in Alabama, efficient claims service center network and cost-effective exclusive agency distribution system. Furthermore, the ratings acknowledge Alfa's well-established brand name in Alabama, exceptional business persistency and high customer loyalty, which is driven by outstanding customer service practices. Likewise, Alfa benefits from management's commitment to balance sheet integrity, strict 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, a conservative reserve philosophy and emphasis on catastrophe exposure management. Financial flexibility is made available through Alfa, the pool's publicly-traded holding company, and along with writing property/casualty and life/health risks, Alfa is engaged in non-insurance operations such as consumer financing, commercial leasing, residential and commercial construction and real estate sales. The affirmation of the rating of Alfa Life reflects its strategic role within the Alfa Group Alfa Group Consortium is one of Russia's largest privately owned financial-industrial conglomerates, with interests in oil and gas, commodities trading, commercial and investment banking (Alfa Bank), insurance, retail trade and telecommunications. , where the corporation has established a strong market niche in Alabama derived from the cross-selling strategies of the Group. The rating also reflects the company's strong risk-adjusted capitalization, consistently positive operating performance and increased new business production. The financial strength rating of A++ (Superior) has been affirmed for the following subsidiaries of the Alfa Insurance Pool: -- Alfa General Insurance Corporation -- Alfa Insurance Corporation -- Alfa Mutual Insurance Company -- Alfa Mutual Fire Insurance Company -- Alfa Mutual General Insurance Company -- Alfa Specialty Insurance Corporation Virginia Mutual Insurance Company is afforded the same rating due to a quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). 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. agreement with Alfa Mutual Fire Insurance Company. The following debt rating has been affirmed: Alfa Insurance Corporation-- -- AMB-1+ on commercial paper program The following debt rating has been assigned: Alfa Insurance Corporation-- -- "aa" on senior debt 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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