A.M. Best Places Ratings of Forethought Life Insurance and Its Subsidiary Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 13, 2004 A.M. Best Co. has placed the financial strength rating of A (Excellent) of Forethought fore·thought n. 1. Deliberation, consideration, or planning beforehand. 2. Preparation or thought for the future. See Synonyms at prudence. Life Insurance Company (Forethought) (Batesville Batesville is the name of several places in the United States:
Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. National Life Insurance Company (Little Rock, AR), under review with developing implications. The present rating of Forethought reflected the company's synergies and capital commitment from its current ownership, Hillenbrand Industries Hillenbrand Industries, Inc., is a holding company. It has two subsidiaries. Hill-Rom makes hospital beds, furniture, and other equipment. Batesville Casket Company makes caskets and cremation urns. , which had contributed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $93 million in capital over the last three years. In order for Forethought to maintain the current rating under its new ownership, A.M. Best will need to feel comfortable with the new capital structure of the organization and its business model. As part of this process, A.M. Best will carefully evaluate the capital capacity available to Forethought in its new proposed parent organization, the new leverage and debt servicing expectations involved in this acquisition, as well as study the key components of the business plan for the insurance entities. A.M. Best continues to acknowledge Forethought's leading position in the pre-need insurance marketplace, its solid operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before and cash flow. A.M. Best will continue to monitor the status of the two insurance companies through additional discussions with management, focusing the review on future insurance business strategy, financial flexibility and efforts to improve the risk on the balance sheet and the business profile of the respective entities in the near term. 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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