A.M. Best Places National Travelers Life's Rating Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--May 8, 2001 A.M. Best Co. has placed the B+ (Very Good) financial strength rating of National Travelers Life Insurance Company (NTL NTL Nevertheless NTL National Transportation Library NTL Norsk Tjenestemannslag NTL National Training Laboratories NTL Never Too Late NTL Nothing to Lose NTL National Training Laboratory NTL None the Less NTL Number Theory Library ) and the financial performance rating of 6 (Good) of 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. , American Travelers Assurance Company, under review with developing implications. This action follows the announcement that NTL will exit the major medical insurance market and reinsure re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. a large portion of its life and annuity inforce block. In recent years, NTL has reported increasing losses and deterioration of its surplus position due to the poor performance of its major medical business. In response to this, the company announced that it is exiting the major medical market via the immediate discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of new business writing and the non-renewal of all its inforce policies beginning November 15, 2001. The exit will affect 21,000 policyholders. John Alden John Alden (1599?–September 22 1687) was one of the Pilgrims who emigrated to America in 1620 on the Mayflower and founded the Plymouth Colony. He was originally hired by William Bradford and others to be their cooper. Life Insurance Company, a Fortis company, will assist in providing continuing coverage to existing policyholders. John Alden Life will reinsure the discontinued block of business during the runoff period for an undisclosed amount. In addition, NTL has also entered into a two-part agreement with Farm Bureau Life Insurance Company (FBL FBL Full Bell Lines (coin grading) FBL Fly by Light FBL FIATA Bill of Lading FBL Functional Baseline FBL Foundation for a Better Life FBL Federal Barge Lines, Inc. ). The first part is the 90% coinsurance A provision of an insurance policy that provides that the insurance company and the insured will apportion between them any loss covered by the policy according to a fixed percentage of the value for which the property, or the person, is insured. of a significant portion of the company's existing life and annuity block for a ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. commission of $27 million. Going forward, FBL will also co-insure 50% of NTL's new life and annuity business. Secondly, FBL will assume responsibility for management of NTL's remaining operations. The net result of these transactions should be an increased level of surplus and more importantly, a reduction in the organization's risk profile. A.M. Best will continue to monitor NTL's ability to implement the proposed action plan and the resulting impact on the company's operating and financial strength. A.M. Best believes that if all of the planned corrective measures are implemented, the organization will be positioned for improved financial stability. The ratings will remain under review until A.M. Best meets with NTL's management team and discusses the transactions further. 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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