A.M. Best Downgrades Rating of Optimum General's Subsidiaries.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 16, 2002 A.M. Best Co. has downgraded the financial strength rating to C++ (Marginal) from B (Fair) of the property/casualty insurance subsidiaries of Optimum General Inc. These subsidiaries include: Optimum Farm Insurance, Optimum Insurance Company (both of Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. ), Optimum Frontier Insurance Company (Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. ), Optimum West Insurance Company (British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography ) and Optimum Property and Casualty Insurance Co., (Texas). This rating action reflects Optimum's continuing weak operating results and the strain losses have placed on its capital position. Based on A.M. Best's assessment of capital adequacy, the company's current level of capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. is marginally able to support various risks. During 2001 and continuing through the first half of 2002, the group's unfavorable results were driven by difficult market conditions in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and losses in its Ontario, Texas and Atlantic operations. Despite the recent actions taken by management, continued uncertainties related to future profitability and capital position remain. Further, these plans will require time and Optimum's trends do not exhibit any evidence these plans will adequately bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz its capital position in the near term. 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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