A.M. Best Affirms Ratings of Penn Treaty Companies.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 7, 2003 A.M. Best Co. has affirmed the financial strength ratings of B- (Fair) of the subsidiaries of Penn Treaty American Corp (Penn Treaty) (Allentown, PA). The subsidiaries are: Penn Treaty Network America Insurance Co, American Network American Network is cable/satellite television network. It broadcasts only American shows. Is part of Televisa Networks, as affiliate on Televisa. Programs broadcast by American Network Talk Shows
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 ). Over the past year, Penn Treaty has executed many of the critical tasks it needed to complete, including refinancing the majority of its outstanding debt originally due in 2003, raising additional capital and has a 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. agreement currently in place for up to 50% of its new business. However, A.M. Best believes it still faces an uphill battle Uphill Battle was an metalcore band with elements of grindcore and noisecore. The group was based out of Santa Barbara, California, USA. History Uphill Battle got some recognition releasing their self-titled record on Relapse Records. if it is to have once more a meaningful presence in the long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. market. Although Penn Treaty has received approval to write new business again in 34 states, it is still seeking approval from other key states. Additionally, the company has been slow to re-establish relationships with parts of its agency force, as evidenced by the modest level of submitted applications. This is not entirely negative, given the capital intensive nature of the long-term care business and the organization's relatively small surplus base. Going forward however, the company needs to either ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale production considerably or reduce its expenses due to the current high expense structure in place. Over the past year, adding further challenges to its capital raising efforts, Penn Treaty's stock price has declined significantly. Since 2001, Penn Treaty has been able to raise capital--even at depressed prices--but this has caused considerable dilution to its existing stockholders. A.M. Best believes that an extended low stock price period would further challenge any future capital raising. Furthermore, while it currently has reinsurance in place for its new business, it may lose this coverage later in 2003 for reasons unrelated to Penn Treaty. 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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