A.M. Best Upgrades Preferred National To A- from B++.OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 16, 1999-- A.M. Best Co. today upgraded the rating of Preferred National Insurance Co., Ft. Lauderdale, Fla. to A- (Excellent) from B++ (Very Good). The rating action follows the addition of Preferred National to the Colony Insurance Group intercompany 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. pooling agreement, effective July 1, 1999. Regulatory acceptance of this amendment was completed during the fourth quarter. Colony Insurance Group is affiliated with Front Royal Inc., an insurance holding company that acquires and operates property and casualty insurance companies that underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. specialty coverages. Since commencing operations in 1992, Front Royal Inc. acquired Front Royal Insurance Co. and Colony Insurance Co. in 1994, Rockwood Casualty Insurance Co. in 1996 and Redwoods redwoods giant trees (sequoias) of Pacific Coast. [Botany: NCE, 2477] See : Tallness Group Inc. and Preferred National Insurance Company Holdings in 1998. Front Royal Inc. manages these subsidiaries on a decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. basis to enable them to respond effectively to changing conditions in their respective markets. At the same time, investment, financial, actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin and other support functions are consolidated to achieve operating efficiencies. 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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