A.M. Best Removes Virginia Mutual Insurance Company from Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 10, 2001 A.M. Best Co. has upgraded the financial strength rating of Virginia Mutual Insurance Company (Virginia Mutual), Glen Allen Glen Allen is the name of several places in the United States of America:
The agreement between the two insurers grants Alfa control of Virginia Mutual's Board of Directors and allows its management team ultimate authority over Virginia Mutual's operations. As of the close of this agreement on August 9, 2001, Virginia Mutual's employees effectively became Alfa employees. Virginia Mutual has entered into a significant quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). 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. agreement with Alfa Mutual Fire Insurance Company (Alfa Mutual Fire), an affiliate of Alfa Mutual Insurance Company. Based on the explicit support of Alfa, Virginia Mutual's financial strength rating was upgraded, effective today. The Alfa group Alfa Group Consortium is one of Russia's largest privately owned financial-industrial conglomerates, with interests in oil and gas, commodities trading, commercial and investment banking (Alfa Bank), insurance, retail trade and telecommunications. of companies are well-established regional insurers operating in the Southern portion of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Alfa Mutual and its affiliate, Alfa Mutual Fire, own more than 50% of the voting stock Voting stock The shares in a corporation that entitle the shareholder to vote. voting stock Stock for which the holder has the right to vote in the election of directors, in the appointment of auditors, or in other matters brought up at the of Alfa Corporation, a publicly traded financial services holding company (Nasdaq: ALFA). The companies are located in Montgomery, Alabama and maintain a combined policyholder's surplus exceeding $1 billion. Alfa Corporation was not a party to this transaction. Virginia Mutual, founded in 1935, offers personal and commercial insurance products in Virginia and North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . The company's predominant line of business is private passenger auto. The insurer utilizes a distribution network of approximately 150 independent retail agencies. This alliance with Alfa will enhance Virginia Mutual's financial strength and provide extensive actuarial and underwriting support for enhancing existing products. For Alfa, the affiliation will denote the insurer's entry into the Virginia and North Carolina markets. 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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