A.M. Best Upgrades Lyndon Property Insurance To "A-" -Excellent- From "B++" -Very Good-.OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 3, 1998--A.M. Best Co. today upgraded Lyndon Property Insurance Co., St. Louis, Mo., to "A-" (Excellent) from "B++" (Very Good). The upgrade reflects the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of the company's business production sources in the year following its acquisition by Frontier Insurance Group, the refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus of its operations on core credit products, and sustained profitability throughout the turmoil of multiple changes in ownership. The company has eliminated its dependence upon a single production source for a large portion of its business by converting its distribution system into a totally unaffiliated network consisting of general agents, third-party administrators, brokers and direct sourcing. In prior years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company had substantially relied on affiliated production sources, which were lost due to changes in the company's ownership. Moreover, Lyndon's strong reputation in the credit insurance market has enabled it to secure strong strategic relationships withvarious financial institutions, general agencies and other insurers. The new rating also reflects management's decision to de-emphasize its specialty personal lines segment and focus on its core credit and auto dealer-related segments, where its traditional 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. and servicing expertise have provided a competitive advantage. The company's excellent 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 strong underwriting expertise, as evidenced by consistently favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating results in its niche credit insurance market, also support the "A-" rating. These positive rating factors are offset by the company's high concentration of affiliated investments and the strong premium growth expected in 1998 with the acquisition of the auto after-markets group from ACCEL ACCEL Accelerate ACCEL Accelerometer ACCEL Accelerando (Music, Gradually Increasing in Speed) ACCEL American College of Cardiology Extended Learning International Corp. and Acceleration Life Insurance Co. late in 1997. These concerns are mitigated, however, by the continuity of management in the acquired entities and their expertise in the warranty market. In addition, Frontier Insurance Group provides Lyndon with financial flexibility, and the life insurance subsidiaries are well capitalized. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.
CONTACT: Jeffrey Dunsavage
(908) 439-2200, ext. 5618
dunsavj@ambest.com
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