A.M. Best Places Ratings of Liberty Life and Its Subsidiary, Business Men's Assurance Under Review With Negative Implications.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 7, 2003 A.M. Best Co. has placed the financial strength ratings of A (Excellent) of Liberty Life Insurance Company (Liberty) (Greenville, SC) and its subsidiary, Business Men's Assurance Company of America (BMA BMA British Medical Association. ) (Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , MO) under review with negative implications. These rating actions reflect the significant decline in risk-adjusted capitalization of Liberty Life and BMA due to transactions that occurred at the time of BMA's acquisition by Liberty Life. In May 2003, Liberty Life completed the acquisition of BMA from Generali Group. As part of this transaction, Generali assumed the existing 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. business of BMA, and BMA redeemed nearly 6.9 million shares of its common stock from Generali. The result of these transactions has led to a significant decline in the statutory capitalization of BMA as well as the overall risk-adjusted capitalization of Liberty Life on a consolidated basis. A.M. Best anticipates these ratings will remain under review with negative implications until A.M. Best reviews the capital plans of RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). Insurance Holdings (USA), the direct parent of Liberty Life, with regard to these companies. RBC Insurance Holdings (USA) is ultimately owned by the Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. . Royal Bank of Canada uses the initials RBC for its businesses and operating subsidiaries, which operate under the master brand name of RBC Financial Group. Royal Bank of Canada is Canada's largest financial institution as measured by market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. and assets, and it is one of North America's leading diversified financial services companies. 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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