A.M. Best Upgrades Rating of Irish Life Assurance plc.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 23, 2001 A.M. Best Co. has upgraded the financial strength rating of Irish Life Assurance plc, Dublin, to A+ (Superior) from A (Excellent). At the same time, following Irish Life & Permanent plc's decision to conduct a strategic review of its U.S. life insurance operations, A.M. Best has placed the A (Excellent) ratings of the three operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of Irish Life of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Inc. (ILona) under review with developing implications. The rating of Irish Life Assurance plc reflects the company's dominant position in the Irish life and pensions market and its strong growth in new business sales and earnings. In addition the company maintains an adequate level of capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper and has a successful multi-channel distribution strategy. Offsetting these strengths are the company's concentration on the relatively small Irish market and the challenges associated with the integration of TSB TSB TPS (Thermal Protection System) Sample Box TSB Technical Service Bulletin TSB Transportation Safety Board of Canada TSB Telecommunication Standardization Bureau TSB Trustee Savings Bank TSB Telecommunications Systems Bulletin Bank. Irish Life Assurance plc, the lead life insurance company within the Irish Life & Permanent Group, is the market leader in the Irish pension, protection and investment markets. Life new business sales, on an annualised premium basis, rose 38% in 2000 to Euro 319.9 million, while life operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. , on an embedded value Embedded Value A common valuation measure used outside North America particularly in the insurance industry. It is calculated by adding the adjusted net asset value and the present value of future profits of a firm. basis, rose 45% to Euro 198.1 million. Capitalisation is adequate given the predominance pre·dom·i·nance also pre·dom·i·nan·cy n. The state or quality of being predominant; preponderance. Noun 1. predominance - the state of being predominant over others predomination, prepotency of unit-linked business in the portfolio. The required minimum solvency margin was covered 2.7 times at the end of 2000. The company maintains a competitive market advantage by selling its products through independent intermediaries, a direct sales force, Irish Permanent branches, directly through electronic distribution channels and through other financial institutions. The merger of Irish Life with Irish Permanent, completed in 1999, further strengthened this position by increasing distribution capacity, providing a broader range of products and services to the company's customer base and offering cross-selling opportunities. Bancassurance Bancassurance A French term referring to the selling of insurance through a bank's established distribution channels. Notes: The result is a bank that can offer banking, insurance, lending, and investment products to a customer. sales have grown rapidly since the merger with Irish Permanent and represented 18% of retail life new business in 2000. This is the most profitable distribution channel and sales are likely to continue to grow strongly following the Group's acquisition of TSB Bank. These strengths are offset to some extent by the company's concentration on the relatively small Irish market. However, A.M. Best notes this market is currently buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. and the company is well positioned to benefit from its market leading position. While the Group faces the challenge of integrating TSB Bank into its existing operations, management has benefited from the experience of merging Irish Life with Irish Permanent and the cost savings forecast from that merger have been achieved. A.M. Best believes the TSB acquisition fits with the Group's strategy to become the leading provider of personal 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. in Ireland. The financial strength rating of the following company has been upgraded to A+ (Superior) from A (Excellent): - Irish Life Assurance plc The A (Excellent) financial strength ratings of the following companies have been placed under review with developing implications: - Interstate Assurance Co., West Des Moines, Iowa - First Variable Life Insurance Co., Little Rock, Arkansas - Guarantee Reserve Life Insurance Co., Indianapolis, Indiana 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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