A.M. Best Comments on Announced Acquisition of Life of The South Corporation.OLDWICK, N.J. -- A.M. Best Co. has commented on the recently announced acquisition of Life of the South Corporation (LOTS) (Macon Macon (mā`kən, mā`kŏn), city (1990 pop. 106,612), seat of Bibb co., central Ga., at the head of navigation on the Ocmulgee River; inc. 1823. , GA) by Summit Partners (Boston, MA), a private equity and venture capital firm that focuses partially on the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and healthcare sectors. As part of this transaction, which closed on June 19, 2007, Summit Partners purchased approximately 82% of the outstanding shares in LOTS through a combination of equity and debt. Additionally, select members of LOTS' senior management team, along with certain rollover A graphic element in an application or on a Web page that changes its color or shape when the pointer is moved (rolled) over it. See JavaScript rollover. See also n-key rollover. stockholders, will hold the remaining shares. The current management team will continue to manage the operations of the company, with no immediate changes to its location or business model. A.M. Best believes that the acquisition should provide the group with additional access to capital and open the doors for growth prospects that were not present under its previous private ownership structure. Following the acquisition, the ratings of all the insurance subsidiaries will remain unchanged. A.M. Best will continue to monitor the ultimate impact the transaction has on the organization's balance sheet strength (including its financial leverage and coverage), operating results and profitability ratios Profitability ratios Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. , as well as the ability of its new parent to help facilitate LOTS' desired business expansion going forward. A.M. Best maintains a 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 B++ (Good) on the group's life insurance subsidiaries, Life of the South Insurance Company (Nashville, GA), the lead life/health company of the group, Bankers Life of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. (Ruston, LA) and Southern Financial Life Insurance Company (Scottsville, KY). The ratings of the life/health subsidiaries were upgraded on November 1, 2006 (See related press release at www.ambest.com.) Additionally, the newly issued financial strength ratings (FSR) of B++ (Good) and issuer credit ratings of "bbb" on the group's property/casualty subsidiaries, Insurance Company of the South (Nashville, GA), Lyndon Southern Insurance Company (Marksville, LA) and American Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Insurance Company (Raleigh, NC) remain unchanged. The outlook for all ratings on LOTS' life/health and property/casualty subsidiaries remains stable. For 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 www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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