A.M. Best Places Ratings of Producers Agriculture Insurance Company and Its Affiliate Under Review With Developing Implications.OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating of B++ (Good) and issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bbb" of Producers Agriculture Insurance Company (PAIC PAIC Patrol Agent in Charge (US Border Patrol) PAIC Professional Association of Intuitive Consultants PAIC Primary Antenna Interface Controller (AN/FSC-78B SATCOM terminal) ) and its 100% reinsured affiliate, Producers Lloyds Insurance Company (PLIC PLIC Piecewise Linear Interface Calculation PLIC Pseudolikelihood Information Criterion PLIC Piecewise Linear Interface Reconstruction PLIC Partitioned Linear Interference Canceler PLIC Provincial Land Information Council PLIC Progressive Lossless Image Coding ) under review with developing implications. All companies are domiciled in Amarillo, TX On September 2, 2009, Producers Ag Insurance Group, Inc. (ProAg), the immediate parent of PAIC and PLIC, entered into a definitive agreement to be acquired by CUNA Cuna Chibchan-speaking Indian people who once occupied the central region of what is now Panama and the neighbouring San Blas Islands and who still survive in marginal areas. In the 16th century they lived in federated villages under chiefs who wielded considerable power. Mutual Investment Corporation (CMIC CMIC CPU Management Interface Controller CMIC Caucasus Media Investigations Center (Baku, Azerbaijan) CMIC Combined Military Interrogation Center (Vietnam) CMIC Configuration Management Information Center ), whereby CMIC would acquire the remaining 77.4% of ProAg that it does not already own. While the acquisition is not expected to close until later in 2009, a capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. of $25 million from CMIC in exchange for preferred stock of ProAg was made on September 2, 2009. With this capital infusion, PAIC's risk-based capitalization returned to healthier levels following the substantial reduction in capital at PAIC during 2009 due to additional losses on the 2008 accident year. The under review status reflects the uncertainties regarding the ultimate 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. arrangements to be made to further strengthen PAIC's capital position and the level of implicit and explicit support that will be provided by CUNA Mutual. However, with the increased fixed cost burden and higher financial leverage resulting from the preferred stock issuance, the ratings may be downgraded if the acquisition does not close in a timely manner. The ratings will remain under review pending the close of the transaction and A.M. Best's discussions with management. For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that 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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