A.M. Best Revises Outlook to Stable for National States Insurance Company.OLDWICK, N.J. -- A.M. Best Co. has revised the outlook for 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. ) to stable from negative for National States Insurance Company (National States) (St. Louis, MO). A.M. Best also 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 B- (Fair) and assigned an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bb-" to National States. The outlook for the ICR is stable. National States has taken a number of corrective actions A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or , including increasing the amount of 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. on its life products to offset new business strain on its capital; implementing rate increases on its senior health business; and discontinuing its graded benefit life products segment. These actions, combined with lower incurred life and health benefits and a lower number of inforce policies, have resulted in profitable operations over the past two years. National States' capital position has reported some growth, primarily as a result of net income. A.M. Best believes National States will continue to be challenged in managing its run-off South Florida home health care block and trying to grow its Medicare supplement business near term. Additionally, while improved, National States still maintains a relatively modest risk-adjusted capital position. 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. 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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