A.M. Best Assigns Rating to Agrinational.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 14, 2001 A.M. Best Co. has assigned an A- (Excellent) financial strength rating to Agrinational Insurance Company, Vermont. Agrinational is a 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. of Archer Daniels Midland The Archer Daniels Midland Company (NYSE: ADM), is a conglomeration based in Decatur, Illinois. ADMoperates more than 270 plants worldwide, where cereal grains and oilseeds are processed into numerous products used in food, beverage, nutraceutical, industrial and animal feed Company, (NYSE NYSE See: New York Stock Exchange : ADM See add/drop multiplexer. (language) ADM - A picture query language, extension of Sequel2. ["An Image-Oriented Database System", Y. Takao et al, in Database Techniques for Pictorial Applications, A. Blaser ed, pp. 527-538]. ). In 2000 ADM ranked 120 in the FORTUNE 500. Its primary business is agriculture and agricultural products. The majority of Agrinational's business is 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. on the operations of its parent company and subsidiaries. Through a controlled pool, the company also assumes a limited amount of third party workers compensation business. The initial rating is reflective of the Agrinational's growth and positive financial results. Over the last five years, Agrinational has exhibited significant growth in total assets and policyholder surplus. In addition, the leverage ratios indicate that current written premiums and loss reserves are adequately supported by capital. Agrinational has a portfolio of assumed risks diversified both geographically and by product line. Partially offsetting these positive rating factors are the high net loss potential resulting from catastrophes and the continuing soft market conditions that have caused 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. results to fluctuate. However, Agrinational's higher net loss potential is somewhat mitigated by the company's favorable geographic spread of risk, historical loss experience and quality reinsurance program. In addition, the company's long term underwriting trend has been to break even. Net income has been favorably supported with consistent and increasing investment returns. The company's rating outlook is stable and is based on its surplus levels, overall financial results and management expertise. 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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