A.M. Best Affirms Surplus Note Rating and Financial Strength Ratings of Atlantic Mutual; Assigns Issuer Credit Ratings.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the debt rating of "b+" on the $100 million 30-year surplus notes issued by Atlantic Mutual Insurance Company. A.M. Best has affirmed the financial strength rating of B+ (Very Good) and assigned issuer credit ratings (ICRs) of "bbb-" to The Atlantic Mutual Companies (Atlantic) and its property/casualty subsidiaries. All companies are located in 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 , NY. All ratings have negative outlooks. The ratings reflect the group's adequate capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and the benefits to be derived from management's restructuring, re-underwriting and increased pricing initiatives over the past several years. The ratings also take into consideration the expense saving initiatives implemented by management, as well as initiatives to enhance the quality capital with permanent funds and improve earnings generation. These positive rating factors are offset by the potential for continued adverse prior year development of the group's loss reserves, the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in its underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and operating profitability in recent years, as well as the uncertainty regarding its future profitability. The group's outlook is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the continued stability of prior year reserve development, improved profitability in its ongoing personal lines operations and evidence of the group's ability to accumulate capital. The following debt rating has been affirmed with a negative outlook: Atlantic Mutual Insurance Company -- "b+-" on $100 million 8.15% 30-year surplus note, due 2028. The financial strength ratings of "B+" (Very Good) have been affirmed and issuer credit ratings of "bbb-" assigned for The Atlantic Mutual Companies and its following property/casualty subsidiaries: --Atlantic Mutual Insurance Company --Centennial Insurance Company For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. 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 http://www.ambest.com. |
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