A.M. Best Affirms Ratings of National Financial Group (PR) and National Life Insurance Company (PR); Removes From Under Review.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 A- (Excellent) and 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 National Financial Group and its members, National Group Insurance Company (Coral Gables Coral Gables, city (1990 pop. 40,091), Miami-Dade co., SE Fla., SW of Miami; inc. 1925. Founded at the height of the Florida land boom, Coral Gables is a noted planned city, with tree-lined boulevards and Mediterranean-style buildings. , FL) and National Insurance Company as well as their affiliate company, National Life Insurance Company (National Life). All ratings have been removed from under review with negative implications and assigned a negative outlook. All companies are domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. in San Juan, Puerto Rico San Juan (IPA: [saŋ hwaŋ]) (from the Spanish San Juan Bautista, "Saint John the Baptist") is the capital and largest municipality on Puerto Rico. , except where specified. (See below for a detailed list of companies and ratings.) National Financial Group was placed under review due to its disclosure to A.M. Best concerning a significant miscalculation mis·cal·cu·late tr. & intr.v. mis·cal·cu·lat·ed, mis·cal·cu·lat·ing, mis·cal·cu·lates To count or estimate incorrectly. mis·cal in its total risk exposure, which was not commensurate with its risk-adjusted capital. The discovery of this miscalculation raised concerns regarding National Financial Group's organizational risk management. A.M. Best has had several meetings with National Financial Group's management and has had the opportunity to assess the impact of the increase in total risk exposure as well as the corrective actions implemented by management to ensure the rectification of this problem. National Financial Group has taken several aggressive steps to protect its policyholders and capital position, which includes a capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. that raised its stress test BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. score to a level commensurate with total exposures and a newly developed catastrophe 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. program presently in line with the calculated total risk exposure. In addition, the company has implemented several control procedures to ensure that total risk exposure is regularly examined and represents accurate data. The negative outlook was assigned due to A.M. Best's overall concerns regarding National Financial Group's breakdown in the management of organizational risk and internal controls, which has resulted in a material financial impact to the company for the second time in the last five years. The rating actions on National Life recognize similar concerns regarding enterprise risk management. National Life maintains close synergies, as well as a cross ownership position, with its affiliated property/casualty companies. While on a stand alone basis, National Life continues to demonstrate positive financial results and more than an adequate level of risk-adjusted capitalization. However, A.M. Best does believe that National Life will continue to bear organizational risk as a result of its affiliation with National Financial Group. The FSR of A- (Excellent) and the ICRs of "a-" have been affirmed for National Financial Group and its following members: * National Insurance Company * National Group Insurance Company The FSR of A- (Excellent) and the ICR of "a-" have been affirmed for National Life Insurance Company. 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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