A.M. Best Upgrades Rating of American Skandia.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 28, 2004 A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) of American Skandia Life Assurance Company (ASLAC ASLAC Advanced Subscriber Line Audio Processing Interface ASLAC Advanced Subscriber Line Audio Controller ) (Shelton, CT). The rating has been removed from under review and a positive outlook has been assigned. The rating action reflects the company's strategic importance to its parent, Prudential Financial, Inc. This rating is supported by ASLAC's solid position in the variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. business which complements Prudential's long-term business strategy in the retirement saving business. Since its acquisition by Prudential, the merger of its annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. business with ASLAC's has created one of the leading variable annuity writers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . A.M. Best expects that ASLAC's results should be a factor in Prudential reaching its longer term financial goals. Offsetting these positive rating factors is the company's need to rely on Prudential for financial support in the competitive and volatile variable (programming) volatile variable - A variable in a computer program which can be modified by processes other than the program. For example, a variable that stores the value of a timer chip (either because it is located at the address of the hardware device or because it is updated annuity market. With its strong position in the variable annuity business, ASLAC is exposed to regulatory, legal and market pressures. Despite these concerns, the company's conservative balance sheet and improving operating profitability, achieved through strict 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. , support the positive rating outlook. 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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