A.M. Best Affirms Ratings of Assurant, Inc.'s Property/Casualty Subsidiaries.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings (FSRs) of A (Excellent) and A- (Excellent) and the issuer credit ratings (ICRs) of "a" and "a-" of Assurant, Inc.'s (Assurant) (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY) (NYSE NYSE See: New York Stock Exchange : AIZ AIZ Lake of the Ozarks, Missouri (Lee C. Fine Memorial Airport) AIZ Air Intercept Zone AIZ Anti Imperialistische Zelle(n) (German: Anti-Imperialistic Cell; now defunct terrorist group) ) property/casualty subsidiaries. The outlook for all ratings is stable. (See below for a detailed list of the ratings). The rating affirmations reflect Assurant's established presence in various specialty markets, continued favorable operating performance and adequate capitalization. These positive rating attributes are derived from Assurant's leadership position in the delivery of credit-related insurance products, creditor-placed hazard insurance Hazard Insurance Insurance protecting a property owner against damages caused by fires or severe storms. If the owner lives in an area that is prone to natural disasters, like earthquakes and floods, he or she may need a separate policy. , manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected insurance, vehicle service contracts and retail extended service contracts and a vast customer base through its large number of distribution sources in North America. Management has continued its strategic focus on leveraging its core capabilities of managing risk, integrating complex administration systems and developing relationships with its large distribution partnerships. As a result, despite record hurricane activity, the group's diversified platform and specialty focus has delivered solid operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before over the last couple of years. Somewhat offsetting these positive factors are the group's exposure to catastrophes and continued dependence upon third-party 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. . This concern is somewhat offset by the book's geographic spread of risk, management's use of risk management tools including tracking aggregation of risks, rate increases and increasing the limits of its property CAT treaty. Although the credit insurance market has gone through major changes in recent years, Assurant has positioned itself to take advantage of the new environment and has been emphasizing other areas in addition to credit insurance. This is evidenced by the group's growth in its specialty property business, both organically and through acquisitions, and other specialty areas both domestically and internationally in recent years. However, this expansion, in conjunction with the increased frequency and severity of hurricanes in recent years, resulted in the company reporting significant gross catastrophe losses in 2004 and 2005. Although third party catastrophe reinsurance significantly reduced the net impact to earnings in both years due to growth in this book of business, in conjunction with the group's increased retention and costs associated with its 2006 hurricane season property catastrophe treaty, a greater variability to earnings could result in the future. The FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. of A (Excellent) and the ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. of "a" have been affirmed for the following property/casualty subsidiaries of Assurant, Inc.: --American Bankers Insurance Company of Florida --American Security Insurance Company --Standard Guaranty Insurance Company --Financial Insurance Exchange --Reliable Lloyds Insurance Company The FSR of A- (Excellent) and the ICR of "a-" have been affirmed for the following property/casualty subsidiaries of Assurant, Inc.: --American Reliable Insurance Company --Caribbean American Property Insurance Company --Voyager Indemnity Insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments Company --Voyager Property and Casualty Insurance Company 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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