A.M. Best Places Ratings of Standard Life of Indiana and Dixie National Life Under Review.OLDWICK, N.J. -- Second graph, last sentence should be removed (sted The closing of this transaction is expected to occur during the third quarter of 2004, subject to regulatory approvals.). The corrected release reads: A.M. BEST PLACES RATINGS OF STANDARD LIFE OF INDIANA AND DIXIE NATIONAL LIFE UNDER REVIEW A.M. Best Co. has placed the financial strength rating of B (Vulnerable) of Standard Life Insurance Company of Indiana (Standard Life), the principal life insurance subsidiary of Standard Management Corporation (SMAN SMAN Standard Medium Accuracy Navigator SMAN Server Manager ) (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 : SMAN) (both of Indianapolis, IN), under review with developing implications. Additionally, A.M. Best has placed the financial strength rating of B (Vulnerable) of Dixie National Life Insurance Company (Ridgeland, MS), a wholly-owned subsidiary of Standard Life, under review with developing implications. These rating actions are a result of yesterday's announcement by Standard Management Corporation that it signed a nonbinding letter of intent to sell its financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. division, Standard Life Insurance Company of Indiana, to an unaffiliated equity investor group. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the letter, the unnamed buyer would likely pay a majority of cash, plus preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. along with debt assumption, and sign a definitive purchase agreement by the end of the year. The letter gives the buyer a 30-day exclusivity period with a breakup fee breakup fee A provision in a takeover agreement that requires a firm to pay the investment banker a large sum of money if another firm takes over the target company. A breakup fee tends to discourage other firms from making bids for the target. should Standard Management enter into a sale agreement with another party. A.M. Best has not discussed the details surrounding the financing of this acquisition, the level of capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of the life insurance company going forward and the operating plans with the management of unnamed buyer. A.M. Best anticipates these ratings will remain under review with developing implications until A.M. Best discusses the above mentioned issues with the management of the unnamed buyer. 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 http://www.ambest.com. |
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