A.M. Best Downgrades Integrity Life Insurance, National Integrity Life to B- Fair From A- Excellent.OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 18, 1999-- A.M. Best Co. today downgraded the financial strength rating of Integrity Life Insurance Co., Louisville, Ky., 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. , National Integrity Life Insurance Co., 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 , to B- (Fair) from A- (Excellent). A.M. Best also revised the under review status of the companies from negative implications to developing. The decision to move the companies into A.M. Best's Vulnerable rating classification at this time reflects the fact that an agreement for the sale of the organization has not yet been reached. As a result, A.M. Best remains significantly concerned with the remaining uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the ultimate resolution of the company's current financial position. This decision also reflects the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of ARM Financial's capital structure and financial flexibility, which no longer meet A.M. Best's expectations for the previous rating designation. A.M. Best also remains concerned with the ongoing exposure to capital losses embedded Inserted into. See embedded system. in its balance sheet related to the unwinding of its institutional contracts or from increased surrenders in its retail business. On July 29, A.M. Best lowered the ratings on the insurance subsidiaries of ARM Financial Group in connection with an announcement by the parent company that it had incurred a net loss of approximately $174 million related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its institutional businesses and that it was positioning of the company for sale. The lower rating reflected ARM's increased financial leverage and weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. fixed coverage capacity. The rating designation assigned at
that time also anticipated that a binding announcement concerning the
sale of the company would have been made by this time.
The ratings will remain under review pending resolution of its ownership status and an evaluation of the financial strength of the prospective buyers of ARM Financial, should the company be sold. A.M. Best Co., established in 1899, is America'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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