A.M. Best Places U.S. Financial Life Under Review On Announcement Of Acquisition.OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 18, 1998--Effective immediately, A.M. Best Co. has placed the "B++" (Very Good) rating of U.S. Financial Life Insurance Co. under review with positive implications. The rating action follows the announcement by MONY MONY Mutual of New York (Insurance - Syracuse, NY) Life Insurance Co., a subsidiary of MONY Group Inc., that it has agreed to acquire U.S. Financial Life Insurance Co. for $48 million. The completion of this transaction is subject to regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval by the various insurance departments, which is anticipated by year end. U.S. Financial Life's statutory net premium writings have increased more than threefold over the five years through 1997, and a 19% increase has been experienced through the end of the third quarter. The vast majority of this growth has been driven by universal life sales in its specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. substandard substandard, adj below an acceptable level of performance. niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the , which serves a higher-risk market. A.M. Best considers the transaction to be beneficial to both parties by providing marketing opportunities to MONY through U.S. Financial's distribution network and access to its 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. experience in the specialized substandard market. Additionally, U.S. Financial will have access to the necessary capital to grow its business. It is anticipated that with the financial backing of MONY, U.S. Financial can continue to broaden its product offerings and expand its premium base. U.S Financial Life is licensed in 41 states and markets primarily life insurance products to the substandard market through over 15,000 agents and brokers. At the end of the third quarter, the company had statutory assets of $103.6 million, $18.1 million in capital and surplus and net premiums of $31.0 million. The "A-" (Excellent) rating of MONY Life Insurance Co. is unaffected by this announcement. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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