A.M. Best Affirms Ratings of Direct General's Property/Casualty Subsidiaries.Revises Certain Outlooks to Stable OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings (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 B (Fair) and the issuer credit ratings (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 "bb+" for the following members of Direct General Group's property/casualty companies. The outlook for these ratings has been revised to stable from positive. These rating actions apply to Direct General Insurance Group (Tennessee), Direct Insurance Company (Nashville, TN), Direct General Insurance Company (Aiken, SC) and its wholly-owned separately rated subsidiary, Direct General Insurance Company of Mississippi (Jackson, MS). A.M. Best has also affirmed the FSR of B (Fair) and the ICR of "bb" for Direct General Insurance Company of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. (Baton Rouge Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , LA). The outlook for these ratings is stable. Additionally, A.M. Best has affirmed the ICR of "b" of the publicly-traded holding company, Direct General Corporation (Direct General) (Nashville, TN) [NASDAQ NASDAQin 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 : DRCT DRCT Direct ]. The outlook for this rating has been revised to stable from positive. The rating affirmations reflect Direct General's elevated underwriting leverage and prior year adverse reserve development trends. These negative rating factors are partially offset by improved risk-adjusted capitalization, favorable underwriting results in recent years, elimination of 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. and a conservative investment profile. The revised outlook contemplates the impact of future business plans and dividend projections provided by management. The revised outlook is consistent with A.M. Best's comments regarding the pending acquisition of Direct General by Elara Holdings, Inc., as outlined in a December 6, 2006 A.M. Best news release. A.M. Best's view of the FSRs is contingent upon Direct General's sustained operating performance trends despite evidence of increased competition in the non-standard automobile market. A.M. Best will continue to monitor Direct General's risk-adjusted capitalization, financial leverage and reserve adequacy with the expectation that these measures will remain within acceptable ranges to support all the ratings. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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