A.M. Best Affirms Ratings of Virginia Surety Company, FFG Insurance Company and Resource Life Insurance Company.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 Virginia Surety Company, Inc. (Virginia Surety) (Chicago, IL) and FFG FFG Forschungsförderungsgesellschaft (German: Austrian research promotion agency) FFG Flash Flood Guidance FFG Guided Missile Frigate FFG Fall from Grace (band) FFG Fast Frigates FFG Freeware Flight Group Insurance Company (FFG) (Texas). Additionally, A.M. Best has affirmed the FSR of B++ (Very Good) and ICR of "bbb" of Resource Life Insurance Company (Resource) (Illinois). The outlook for all ratings is stable. These rating actions follow the November 30, 2006 completion of the acquisition by ONEX Corporation Onex Corporation TSX: OCX is a Toronto based investment firm. It was founded in 1983 by Gerry Schwartz. Today it is a publicly traded company but Schwartz has 67.6% of the voting control and continues to serve as Chairman and CEO. of the Aon Warranty Group from Aon Corporation (Aon) (Chicago, IL) [NYSE NYSE See: New York Stock Exchange : AOC AOC, n an acronym for the Aromatherapy Organizations Council. ]. This acquisition includes Virginia Surety and Resource Life. FFG is not included in the acquisition and will be strictly in run off going forward. Virginia Surety and FFG will no longer maintain a group rating. The rating affirmations of Virginia Surety reflect its business plan to focus exclusively on extended warranty writings and the excellent track record of its management team in running profitable warranty operations. The ratings also take into consideration the company's solid capitalization, as well as the loss portfolio 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 entered into with FFG prior to the transaction, which covers all specialty property/casualty prior year reserves. Aon is providing an unlimited guarantee and indemnification to Virginia Surety for the run-off of the specialty property/casualty reserves. The rating affirmations of FFG reflect its adequate capitalization and the expectation that all specialty property/casualty liabilities will be run off in an orderly fashion. An analysis of FFG's current and pro-forma cash flows indicates that sufficient capital exists to support its existing financial obligations. The ratings of Resource reflect its strategic relationship with Virginia Surety. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc. 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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