A.M. Best Places Ratings of Century Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 30, 2004 A.M. Best Co. has placed the financial strength ratings of A- (Excellent) of the members of the Century Insurance Group (Westerville, OH) under review with developing implications. This is the result of a series of transactions completed on April 26, 2004, which concluded with the successful completion of the Initial Public Offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) of 8,900,000 common shares by Century Surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. Company's (Century Surety) parent company, ProCentury Corporation (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 : PROS). The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). generated by the IPO were approximately $77,120,000, of which a minimum $55,000,000 is expected to be contributed to Century Surety. The series of transactions in conjunction with and immediately preceding the close of the ProCentury Corporation IPO resulted in a transfer of ownership of Century Surety's two subsidiary insurance carriers, Evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. National Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Company and Continental Heritage Insurance Company (both of Ohio). The ownership of these two former subsidiaries was transferred to a separate, newly formed holding company, ProAlliance Corporation, which was not party to the IPO. Operationally, the dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of the pooling agreement will allow Century Surety to re-focus on its core excess and surplus lines business. A.M. Best will meet with the management teams of Century Surety, Evergreen National Indemnity and Continental Heritage shortly to discuss the individual business plans and overall direction for them in the near term. The developing implications reflect the need for A.M. Best to analyze how the additional capital will be deployed in support of Century Surety's business plans for 2004 and beyond. In addition, the developing implications reflect A.M. Best's need to meet with the management of Evergreen National Indemnity and Continental Heritage to discuss the direction of these companies following their separation from Century Surety. 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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