A.M. Best Places American Indemnity Units Under Review With Positive Implications.OLDWICK, N.J.--(BUSINESS WIRE)--March 22, 1999--A.M. Best Co. today placed the B (Fair) ratings of the American Indemnity Co., American Fire & Indemnity Co., Texas General Indemnity Co., and American Indemnity Lloyds, all of Galveston, Texas
The rating actions follow the recent announcement that United Fire & Casualty has signed a definitive agreement to acquire American Indemnity Financial Corp. for approximately $30.6 million in cash. The positive implications reflect United Fire & Casualty's financial strength and 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. expertise in commercial and personal business, a stop-loss agreement for prior-year loss reserves and the potential economies of scale. The ratings will remain under review pending the completion of the transaction, which is expected in June 1999, and A.M. Best's discussions with management concerning future business plans and 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. . American Indemnity Group underwrites a diversified diversified (di·verˑ·s line of property/casualty insurance with a large portion of premiums written in automobile liability and physical damage and commercial multiple peril The designated contingency, risk, or hazard against which an insured seeks to protect himself or herself when purchasing a policy of insurance. Among the various types of perils for which insurance coverage is available are fire, theft, illness, and death. PERIL. . Most of the business is underwritten in Texas. 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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