A.M. Best Affirms The A Rating On Barbados Mutual, Capital Life.OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 29, 1999-- A.M. Best Co. today 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 A (Excellent) ratings of the Barbados Barbados (bärbā`dōz), island state (2005 est. pop. 279,300), 166 sq mi (430 sq km), in the West Indies. The capital and largest city is Bridgetown. Land, People, and Economy The island, E of St. Mutual Life Assurance Society, St. Michael, Barbados, 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. , Capital Life Insurance Co. Ltd., Nassau, Bahamas For other uses of "Nassau", see Nassau (disambiguation). Nassau is the capital city and commercial center of the Commonwealth of the Bahamas. The city has a population of 210,832 (2000 census), nearly 70 percent of the entire population of the Bahamas (303,611). . These two life insurance companies are part of the Mutual Group of Companies. This rating is based on the Mutual Group's excellent 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. , consistent profitable operations, strong Caribbean market presence and diversified diversified (di·verˑ·s premium income. The Barbados Mutual Life Assurance Society's core business lines historically have been profitable, with the exception of its group health business. Improved mortality experience from group and individual life products, and low surplus strains arising from modest new individual life writings, contribute to its continued profitability. The Mutual Group's strong operating performance has enabled the surplus of Barbados Mutual Life to double in the past five years, with strong capitalization relative to current insurance investment and interest rate risks. Although the company maintains a relatively high proportion of investments in mortgage loans, equity investments and real estate, A.M. Best believes its liquidity position is adequately supported by its high-quality bond portfolio, cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. However, A.M. Best also believes the company remains challenged to manage the relatively high level of surrender activity from its life business and adverse group health claims experience. The Mutual Group has built a strong market presence in many Caribbean territories, reflecting both its favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reputation and long-standing operating presence. The company's operating profile has enabled it to develop diversified sources of premium income across several core product lines and major Caribbean territories thereby allowing continued growth. The Mutual Group continues to seek opportunities to develop new geographic markets and search for prospective acquisitions to expand distributive dis·trib·u·tive adj. 1. a. Of, relating to, or involving distribution. b. Serving to distribute. 2. capacity and improve economies of scale. The Mutual Group is faced with the challenge of expanding the new individual life insurance sales. This trend is closely tied to the mature nature of the Caribbean individual market. However, also playing a role in the Mutual Group's decline is increased competition, a declining producer base and the limited size of its geographic territories. Although it has successfully distributed its products through its career agency force, the Mutual Group has experienced difficulty in attracting new agents who meet the group's criteria. The Mutual Group has addressed these issues through several initiatives, but A.M. Best believes the company will remain challenged to significantly increase new life insurance sales activity and achieve economies of scale. A.M. Best Co., established in 1899, is the world's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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