A.M. Best Study Says Kmart Bankruptcy Hits Insurers' Investment Portfolios.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 11, 2002 The filing of Chapter 11 bankruptcy for retailing giant Kmart is adding to the investment exposures currently hitting insurance company portfolios, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an A.M. Best statistical study released today. Kmart cited, "the evaporation evaporation, change of a liquid into vapor at any temperature below its boiling point. For example, water, when placed in a shallow open container exposed to air, gradually disappears, evaporating at a rate that depends on the amount of surface exposed, the humidity of the surety bond surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. market" as one of the reasons for its financial woes. The life/health industry reported a market value of $332.8 million in Kmart securities, including common and preferred stocks 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. and corporate bonds, while the property/casualty market reported $52.4 million, based on quarterly filings with the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. as of September 30, 2001. John Hancock Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , State Compensation Insurance Fund The State Compensation Insurance Fund (SCIF or State Fund) is a workers' compensation insurer that is operated as a public enterprise created by the U.S. state of California. of California, Connecticut General Life Insurance Co., Prudential Insurance Company of America, Texas Mutual Insurance Co. and Capital Indemnity Corp., are some of the insurers affected. A.M. Best expects to update this statistical study with year-end 2001 data when it becomes available, as certain positions might have been reduced after the quarterly filing, and some insurers will have to write down these assets. The full 16-page A.M. Best statistical study provides details on the individual investments of the major insurance companies, including their holdings in Kmart's common and preferred stock and corporate bonds. The study shows the number of shares, book value, market value, statement value and actual costs as of September 30, 2001, the most recent date for which data is available. Data on corporate bonds also includes the year bonds were acquired, maturity dates and rates. Subscribers to BestWeek can download a printed copy of the full 16-page statistical study free or a combination of the printed study plus a spreadsheet file of the study data for $75 from the BestWeek Web site at http://www3.ambest.cossm/frames/fs.asp?site=bestweek&tab=4. Nonsubscribers can download a copy of the full 16-page study for $50 or a combination of the printed study plus a spreadsheet file of the study data for $100 from the BestWeek Web site at http://www3.ambest.com/frames/fs.asp?site=bestweek&tab=4. 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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