A.M. Best Assigns Negative Outlook To UNUMProvident Group Ratings.OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 4, 1999-- A.M. Best Co. today placed a negative rating outlook on the A+ (Superior) group ratings of the active operating affiliates within the UNUMProvident Corp. organization. The affected companies are: UNUM Life Insurance Company of America, Provident prov·i·dent adj. 1. Providing for future needs or events. 2. Frugal; economical. [Middle English, from Latin pr Life & Accident Insurance Co., Paul Revere Revere, city (1990 pop. 42,786), Suffolk co., E Mass., a residential suburb of Boston, on Massachusetts Bay; settled c.1630, set off from Chelsea and named for Paul Revere 1871, inc. as a city 1914. Life Insurance Co., Colonial Life & Accident Insurance Co., First UNUM Life Insurance Co., Paul Revere Protective Life Insurance Co., Paul Revere Variable Annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. Insurance Co., Provident Life & Casualty Insurance Co. and Provident National Assurance Co. The negative outlook follows UNUMProvident Corp's third-quarter earnings announcement that included numerous additional charges to profits. While the operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before reported were within expectations, the magnitude and number of the one-time charges was unexpected. Additionally, UNUMProvident faces continued challenges in completing the integration of the UNUM and Provident organizations, including integrating systems and increasing its new business writings. A rating downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. may become necessary in the near term if additional unexpected charges arise, additional integration difficulties become apparent or new business sales do not display positive momentum. A.M. Best still believes, however, that UNUMProvident remains in a favorable long-term position to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its position as the largest writer of individual and group disability income products. 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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