A.M. Best Downgrades Rating of Nippon Life Insurance Company of America.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 27, 2004 A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A- (Excellent) of Nippon Life Insurance Company Nippon Life Insurance Company (日本生命保険相互会社 of America (NLIA NLIA Native Language Internet Address NLIA Nuclear Labeling Index Analysis NLIA North Lawrence Improvement Association NLIA Newfoundland and Labrador Institute of Agrologists NLIA Northern Lights Impala Association ) (Des Moines Des Moines, city, United States Des Moines (dĭ moin`), city (1990 pop. 193,187), state capital and seat of Polk co., S central Iowa, at the junction of the Des Moines and Raccoon rivers; inc. , IA). The rating outlook is stable. This rating action reflects the consistent underwriting losses in NLIA's core medical line of business at a time when most medical writers have performed very well. NLIA should also experience pressure on its earnings as it attempts to grow outside of its traditional niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . Further, the company's business profile is dependent on its performance within the volatile group medical market. NLIA maintains a very good position as a niche provider to companies either owned or affiliated with a Japanese parent organization. A.M. Best also acknowledges that NLIA has been diversifying its book of business so that it is not reliant upon any one market segment for growth or stability; however, NLIA is still heavily dependent upon two very competitive markets, California and 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 . 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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