A.M. Best Affirms Ratings of Entities of Old Mutual Financial Network.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (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 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 "a+" of OM Financial Life Insurance Company (OMFLIC) and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , OM Financial Life Insurance Company of 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 (together known as OM Financial Life). These companies are the principal insurance subsidiaries of Old Mutual U.S. Life Holdings, Inc. (OMUSLH), which is an indirect, wholly owned subsidiary of Old Mutual plc. Old Mutual plc is an international 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. company based in London, England. Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and the ICR of "a-" of Americom Life & Annuity Insurance Company (Americom), a strategic subsidiary of OMUSLH. A.M. Best notes that Americom is expected to be merged into OMFLIC at the end of third quarter 2007. All companies are headquartered in Baltimore, MD. The outlook for all ratings is stable. OM Financial Life and Americom comprise the U.S. life insurance and annuity operations of their ultimate parent, Old Mutual plc, and are marketed under the name, Old Mutual Financial Network (OMFN). The ratings reflect OMFN's strong sales and leading market positions within its niche businesses, especially fixed-indexed life insurance and annuities, its established distribution network and sound asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. practices and hedging programs. OMFN also benefits from the financial strength and support of Old Mutual plc, which has historically provided the capital necessary to support business growth in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Partially offsetting these rating strengths are the group's history of statutory operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , its concentration in the highly competitive individual annuity marketplace and its modest risk-adjusted capitalization. A.M. Best notes that operating losses over the last several years have been largely caused by expense strain from robust annuity production. OMFN also continues to make progress in expanding life sales, with a focus on marketing mortgage term and universal life sold through brokerage channels. However, OMFN typically maintains a level of risk-adjusted capitalization below that of similarly-rated peers and will be dependent on additional capital infusions from Old Mutual plc should statutory losses continue. 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 global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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