A.M. Best Affirms Ratings of COUNTRY Insurance & Financial Services and Affiliates; Upgrades Ratings of Cotton States Companies and Removes Ratings From Under Review.OLDWICK, N.J. -- 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 A+ (Superior) of COUNTRY Insurance & Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. (COUNTRY) (Bloomington, IL) and certain affiliates. The rating outlook remains stable. Additionally, A.M. Best has upgraded the financial strength ratings to A+ (Superior) from B (Fair) of Cotton States Mutual Insurance Company (Cotton States) and its subsidiary, Shield Insurance Company (Shield) (both of Georgia). The ratings have been removed from under review with positive implications and assigned a stable outlook. These upgrades are the result of the January 1, 2005, agreements whereby Cotton States and Shield became affiliated with COUNTRY Mutual Insurance Company (COUNTRY Mutual) (Bloomington, IL), the lead property/casualty company of COUNTRY, via a 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. pooling arrangement and 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 agreement, respectively. A.M. Best has also affirmed the financial strength ratings of A+ (Superior) of COUNTRY Life Insurance Company (COUNTRY Life) and COUNTRY Investors Life Assurance Company (COUNTRY Investors) (Bloomington, IL) and the financial strength rating of A- (Excellent) of Mutual Service Life Insurance Company (Arden Hills, MN). These ratings have a stable outlook. In addition, the financial strength rating has been upgraded to A- (Excellent) from B++ (Very Good) of Cotton States Life Insurance Company (Cotton States Life) (Atlanta, GA) following its acquisition by COUNTRY Life and COUNTRY Mutual. The rating has been removed from under review with positive implications and assigned a stable outlook. These ratings are reflective of COUNTRY's superior 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. , improving operating performance and broader geographical diversification, which has been enhanced by the Cotton States affiliation. The company's strong capital position reflects management's conservative operating and financial strategies as evidenced by the group's low 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. leverage, high-quality investments, expense management initiatives and prudent loss reserve practices. These positive rating factors are modestly offset by unfavorable and inconsistent operating results prior to 2003, as a result of loss frequency, rising loss costs and earnings drag from merged businesses. In addition, COUNTRY and its affiliates remain exposed to localized storms in the Midwest and New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , along with hurricane activity in the Southeast and an earthquake stemming from the New Madrid New Madrid (mă`drĭd), city (2000 pop. 3,334), seat of New Madrid co., extreme SE Missouri, on Mississippi River at the sweeping New Madrid Bend; inc. 1808. fault. However, these exposures are manageable and are mitigated through a comprehensive reinsurance program placed with high-quality reinsurers. COUNTRY Life and COUNTRY Investors' affirmations reflect their superior consolidated absolute and risk-adjusted capitalization, strong multi-line penetration and recent expense control initiatives. Offsetting these strengths are their limited total direct premium growth, modest statutory profitability returns and concentrated geographic focus. Cotton States Life's rating upgrade acknowledges its new ownership by COUNTRY Life and COUNTRY Mutual, its favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. level of risk-adjusted capitalization and its continued growth in premium levels. Offsetting these strengths are continued net losses incurred the last several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time possible integration challenges as a result of the recent merger and its somewhat concentrated profile. A.M. Best acknowledges that this acquisition does give the life operations greater geographic diversity. For a complete list of COUNTRY Insurance & Financial Services' financial strength ratings, please visit http://www.ambest.com/press/011302COUNTRYMUTUALINSURANCE.pdf For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. 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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