A.M. Best Places Guarantee Life Insurance Ratings Under Review With Positive Implications.OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 20, 1999--A.M. Best Co. today placed the A- (Excellent) ratings of Guarantee Life Insurance Co. and its subsidiary, Westfield Westfield. 1 City (1990 pop. 38,372), Hampden co., SW Mass., a residential and industrial suburb of Springfield, on the Westfield River; settled c.1660, inc. as a city 1920. Bicycles, machinery, and paper and metal products are made. Life Insurance Co. -- as well as the B++ (Very Good) rating of Guarantee Protective Life Insurance Co. -- under review with positive implications. The rating action followed the announcement that Jefferson-Pilot Corp. plans to acquire the Guarantee Life Cos. Inc. in December December: see month. 1999. Guarantee Life is expected to benefit from Jefferson-Pilot's conservative 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. and financial management strategies, its focus on expense management and its expertise in integrating acquisitions. A.M. Best recently affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. Jefferson-Pilot's A++ (Superior) rating, in part because of its ability to derive de·rive v. 1. To obtain or receive from a source. 2. To produce or obtain a chemical compound from another substance by chemical reaction. strategic benefits and expense efficiencies from recent acquisitions. The Guarantee Life acquisition will give Jefferson-Pilot added scale in its individual life operations and a platform for expanding its group life and disability market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . The ratings of the Jefferson-Pilot group of companies are not affected by the proposed transaction. While the acquisition will provide the Guarantee Life companies with enhanced scale and financial flexibility, A.M. Best expects that the combined organization will face challenges in maintaining revenue and earnings growth in its highly competitive primary markets. 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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