A.M. Best Places Ratings of BancInsure, Inc. Under Review With Negative Implications.OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of BancInsure, Inc. (BancInsure) (Oklahoma City Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm , OK) under review with negative implications. These rating actions are due in part to a 36% decline in BancInsure's surplus as of December 31, 2008 compared to year-end December 31, 2007. The rating actions follow BancInsure's disappointing net loss for 2008 and unrealized investment losses, which combined, produced a $16.1 million erosion in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. in 2008. A.M. Best also is concerned that the continuing turmoil in the financial markets could further erode Erode (ĕrōd`), city (1991 urban agglomeration pop. 361,755), Tamil Nadu state, S India, on the Kaveri River. The city is located in a cotton-growing region, and its industries include cotton ginning and the manufacture of transport equipment. BancInsure's capital position and negatively impact its earnings in 2009. A.M. Best recognizes that the company has demonstrated an ability to raise capital from its stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. in the recent past. The under review status will remain in place until a full formal evaluation and analysis of BancInsure's risk-adjusted 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. and further discussions are held to determine whether it has sufficient cushion to weather more negative effects of the continuing turmoil in the financial markets, as well as any other unexpected events. A.M. Best remains the leading rating agency of captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. insurers rating a wide variety of more than 200 captives in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology. 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. |
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