A.M. Best Revises Outlook to Stable for MMG Insurance Company.OLDWICK, N.J. -- A.M. Best Co. has revised the outlook to stable from positive and 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 financial strength rating of A- (Excellent) and issuer credit rating of "a-" of MMG MMG Macquarie Media Group MMG Ministry Medical Group MMG Medium Machine Gun MMG Mobile Messaging Gateway MMG Master of Management MMG Meridian Management Group, Inc. Insurance Company (MMG) (Presque Isle Presque Isle (prĕsk īl) [Fr.,=peninsula], city (1990 pop. 10,550), Aroostook co., NE Maine, inc. 1859. It is the trade, tourist, and shipping center of the Aroostook valley. , ME). The revised outlook reflects MMG's declining operating results for the past two years, which were caused by significant weather activity and increased fire losses. The ratings of MMG recognize its strong 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. and long-standing agency relationships. MMG's risk-adjusted capital position is supported by diversified and conservative asset risk and modest 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. risk. Capitalization was enhanced through two trust preferred issuances and a common and 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. issuance, which effectively allowed underwriting leverage to be maintained while modest premium growth occurred. Partially offsetting these positive rating factors is the company's exposure to localized storm losses, regulatory actions and competitive market pressures in its rather limited operating territory. 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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