A.M. Best Places Southern Pioneer Life Under Review With Positive Implications and Affirms Ratings of American Modern Life.OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of B+ (Very Good) of Southern Pioneer Life Insurance Company (Southern Pioneer Life) (Trumann, AR) under review with positive implications following American Modern American Modern was a distinct American design aesthetic formed in the period between 1925 and World War II. American Modern was created by a pioneering group of designers, architects and artists, among them were Norman Bel Geddes, Donald Deskey, Henry Dreyfuss, Paul Frankl, Insurance Group's (American Modern) (Amelia, OH) announcement of an agreement to acquire all the outstanding stock of Southern Pioneer Life and its life/health affiliates. This acquisition is expected to add geographic diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. to American Modern's credit life and disability operations. The rating of Southern Pioneer Life will remain under review pending regulatory approval, the close of the transaction and further discussions with management concerning its strategic plans and the expected contribution of Southern Pioneer Life to American Modern. The transaction is expected to close in the third quarter of 2006. Concurrently, A.M. Best has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the FSR of A- (Excellent) and the issuer credit rating of "a-" of American Modern Life Insurance Company (American Modern Life) (Amelia, OH), which is the American Modern entity acquiring Southern Pioneer Life. The outlook for all ratings is stable. The ratings of American Modern Life are based on its integral position as the lead life/health affiliate within American Modern, a trend of positive statutory operating results and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. level of risk-adjusted 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. . Partially offsetting these factors are the impact of economic and regulatory challenges on the future growth of the credit insurance business, a narrow business profile and continued geographic concentration risk with respect to premium production. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh. 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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