A.M. Best Places Ratings of Kingsway Financial Services Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 27, 2002 A.M. Best Co. has placed the financial strength ratings of the insurance subsidiaries of Kingsway Kingsway may refer to:
Please [ improve this article] or discuss the issue on the talk page. Inc (Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of ) and the senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. rating of "bbb" on its 1999 syndicated bank facility, under review with negative implications. (Please see the list of companies below.) These rating actions reflect A.M. Best's concerns about the group's elevated underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. leverage position due to significant growth in written premiums. Kingsway is in the process of raising capital to support the expected growth of its business and for general corporate purposes including repayment of all or a portion of its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Completion of these efforts will be looked upon favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. by A.M. Best. The group's premium growth has far exceeded A.M. Best's expectations for 2002, and Kingsway's management has indicated its U.S. operations are projected to continue showing strong increases through 2003. Given Kingsway's rapid growth in new markets, A.M. Best has concerns regarding Kingsway's level of profitability and its ability to effectively manage and administer the underwriting and claims functions. A.M. Best notes that although the underlying operating performance of the group has improved, some key operational areas are still underperforming. A.M. Best plans to meet with senior management to discuss Kingsway's plan for effectively managing and supporting its growth with adequate levels of capital and resources. The following financial strength ratings have been placed under review with negative implications for the insurance subsidiaries of Kingsway Financial Services Inc: -- Kingsway General Insurance Company A (Excellent) -- JEVCO Insurance Company A (Excellent) -- York Fire and Casualty Company A (Excellent) -- Kingsway Reinsurance (Bermuda) Ltd. A (Excellent) -- Lincoln General Insurance Company A- (Excellent) -- Universal Casualty Company A- (Excellent) -- American Service Insurance Company B++ (Very Good) -- American Country Insurance Company B+ (Very Good) -- Southern United Fire Insurance Company B+ (Very Good) -- US Security Insurance Company B (Fair) The following debt rating has been placed under review with negative implications: Kingsway Financial Services Inc-- - "bbb" senior unsecured debt rating on its 1999 syndicated bank facility 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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