A.M. Best Takes Rating Actions on ING's Subsidiaries.Business Editors A.M. Best Co. has affirmed the A+ (Superior) financial strength rating of ING's principal United States insurance subsidiaries and also assigned an A+ (Superior) financial strength rating to First Columbine columbine, in botany columbine (kŏl`əmbīn), any plant of the genus Aquilegia, temperate-zone perennials of the family Ranunculaceae (buttercup family), popular both as wildflowers and as garden flowers. Life Insurance Company. A.M. Best also lowered to A (Excellent) from A+ (Superior) the financial strength rating of Life Insurance Company of Georgia due to its assessment of the company's reduced strategic importance to the organization and removed the A+ (Superior) financial strength rating of First Golden American Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of which was sold to an affiliate. The U.S. operating entities are wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of ING America Insurance Holdings, Inc. (ING AIH AIH American Institute of Homeopathy; artificial insemination by husband. AIH abbr. 1. artificial insemination performed by the husband 2. ), a U.S. intermediate holding company which is ultimately owned by the ING Group (NYSE NYSE See: New York Stock Exchange : ING), The Netherlands. The ratings are based on the diversified revenue and earnings sources of ING AIH as well as the superior level of risk-adjusted capitalization maintained by its operating companies. Through its recent acquisitions, ING AIH has become one of the largest life insurance operations in the United States in terms of insurance assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and is a leading provider of life insurance, annuities, retirement services products and asset management products and services. These acquisitions were funded by the ING Group to realize ING AIH's growth strategy within the North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. . Partially offsetting these strengths is a reduction in operating performance in recent years. Factors having a negative impact on earnings include a relatively high, although improving, expense infrastructure, as well as large operating losses in its 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. operations and impairments in its bond portfolio, largely stemming from the recently acquired operations. In an effort to improve profitability, ING AIH recently initiated actions to further integrate and consolidate its operations. Activities in these areas are expected to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by $250-$300 million, about 15% of its operating budget. ING AIH has also taken steps to improve its administrative systems, realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. information services See Information Systems. and enhance distribution capabilities to better respond to the changing market conditions. A.M. Best acknowledges the progress management has made towards integrating its recent acquisitions. However, A.M. Best believes the organization will remain challenged in improving its operating performance to levels commensurate with its highly rated peers, particularly given the current economic environment and the increasingly competitive nature of its businesses. ING AIH maintains ample liquidity to meet its insurance obligations and has a conservatively managed investment portfolio, which consists primarily of investment grade fixed income securities and a commercial mortgage loan portfolio. ING AIH is also active in the fixed income private placement, collateralized mortgage obligation Collateralized mortgage obligation (CMO) A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. and structured notes markets. Consequently, its investment portfolio is subject to a somewhat higher degree of liquidity, interest rate and option risk. The company mitigates these risks by regularly analyzing its investment portfolio and performing asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. that is designed to match the expected maturity of its investment portfolio with the timing of its insurance liabilities. A.M. Best believes that the group's disciplined approach toward capital and asset/liability management, together with its stable liability profile mitigates much of the risks associated with market fluctuations. The ING Group is a diversified financial service organization based in Amsterdam, The Netherlands, and is one of the world's largest providers of integrated financial products, with total consolidated assets of nearly EURO 705 billion. The financial strength rating of A+ (Superior) has been affirmed for the following companies: - Ameribest Life Insurance Co. - Midwestern United Life Insurance Co. - United Life & Annuity Insurance Co. - Security-Connecticut Life Insurance Co. The financial strength rating of A (Excellent) has been affirmed for the following companies: - Ameribest Life Insurance Co. - Midwestern United Life Insurance Co. - United Life & Annuity Insurance Co. - Security-Connecticut Life Insurance Co. The financial strength rating has been lowered to A (Excellent) from A+ (Superior) for the following company: - Life Insurance Company of Georgia A financial strength rating of A+ (Superior) has been assigned to the following company: - First Columbine Life Insurance Company The financial strength rating of A+ (Superior) has been removed from the following company: - First Golden American Life Insurance Company of New York 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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