A.M. Best Places Ratings of American Modern Under Review With Negative Implications and Its Life Companies With Developing Implications.OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A+ (Superior) and issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aa-" of American Modern American Modern was a distinct American design aesthetic formed in the period between 1925 and World War II. American Modern was created by a pioneering group of designers, architects and artists, among them were Norman Bel Geddes, Donald Deskey, Henry Dreyfuss, Paul Frankl, Insurance Group (American Modern) and its property/casualty members under review with negative implications. In addition, A.M. Best has placed the FSR of A- (Excellent) and ICR of "a-" and the FSR B++ (Good) and ICR of "bbb" of American Modern Life Insurance Company (American Modern Life) (Cincinnati, OH), the lead life insurer within American Modern and Southern Pioneer Life Insurance Company (Trumann, AK), under review with developing implications, respectively. Concurrently, A.M. Best has placed the ICR of "a-" and debt ratings of "a-" on senior debt, "bbb+" on subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and "bbb" on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of the $150 million shelf registration under review with negative implications, which was filed by American Modern's ultimate parent, The Midland Company (Midland) (Amelia, OH) [NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : MLAN (Music LAN) A local area network based on FireWire that is used to transport audio, video and MIDI data. As music has evolved into the digital realm, mLAN is designed to replace the myriad of cables, plugs and "in," "out" and "through" sockets on synthesizers, mixers and ]. (See below for a detailed list of the companies and ratings.) These rating actions follow the announcement that Midland has signed a definitive merger agreement with Munich-American Holding Corporation (Munich-American) (Delaware), which will result in Munich-American acquiring all of Midland's outstanding stock. As a result, Midland would become an affiliate of Munich Re America Corporation (New Jersey), the parent holding company of Munich Reinsurance America Munich Reinsurance America (also called Munich Re America), formerly known as American Re Corporation before September 2006,[1] is one of the top providers of property & casualty reinsurance in the US (along with General Re). It is a subsidiary of Munich Re. , Inc. (Delaware). These rating actions further reflect A.M. Best's viewpoint concerning the uncertainties, which may exist relative to the long-term strategic implications for American Modern following this transaction. While it is anticipated that American Modern is expected to continue to maintain a favorable operating performance, A.M. Best remains concerned regarding potential long-term growth initiatives. However, as American Modern's existing senior management will continue in their current capacity, combined with the financial flexibility afforded by Munich Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company (Germany), the ultimate parent company, A.M. Best expects minimal near-term impact operationally to American Modern. Therefore, it is anticipated that the ratings of American Modern will be affirmed once shareholder and regulatory approvals are received, in conjunction with A.M. Best conducting further due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. regarding this transaction. Furthermore, A.M. Best will review with management the strategic role that the life companies will play under their new ownership structure to determine the impact on the ratings of the life operations. The FSR of A+ (Superior) and ICRs of "aa-" have been placed under review with negative implications for American Modern Insurance Group and its following members: * American Modern Home Insurance Company * American Family Home Insurance Company * American Southern Home Insurance Company * American Western Home Insurance Company * American Modern Select Insurance Company * American Modern Lloyds Insurance Company * American Modern Insurance Company of Florida Incorporated * American Modern Surplus Lines Insurance Company The FSR of A- (Excellent) and the ICR of "a-" have been placed under review with developing implications for American Modern Life Insurance Company. The FSR of B ++ (Good) and the ICR of "bbb" have been placed under review with developing implications for Southern Pioneer Life Insurance Company. The ICR of "a-" has been placed under review with negative implications for The Midland Company. The following debt ratings have been placed under review with negative implications for the $150 million shelf registration: The Midland Company-- --"a-" on senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. --"bbb+" on subordinated debt --"bbb" on preferred stock Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion