Acceleration Life Insurance Rated 'BBBpi' by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/13/98--Standard & Poor's today assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. its triple-'Bpi' insurer financial strength rating to Acceleration Life Insurance Co. Acceleration Life is licensed in 41 states. The company's major line of business is credit accident and health, and it is a subsidiary of Frontier Insurance Group Inc., an underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. and creator of specialty insurance products. The company commenced operations in 1973; and the principle state in which it operates is Ohio. The following factors were incorporated in the rating of triple-'Bpi'. -- 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. is extremely strong, over 300% under Standard & Poor's capital adequacy model and as such, is a strength for the rating. -- The company's liquidity is very strong at 233% as measured by Standard & Poor's liquidity model. -- The company's premium revenue is more volatile than most higher rated companies. -- With 90% of its direct premium income from four states, the company is geographically more concentrated than most higher rated insurance companies. -- Although the company is a member of Frontier Insurance Group, Inc., which has an counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit rating of triple-'B'-plus, Standard & Poor's believes that this relationship is not a significant rating factor. 'Pi' ratings, denoted with a pi subscript (1) In word processing and scientific notation, a digit or symbol that appears below the line; for example, H2O, the symbol for water. Contrast with superscript. (2) In programming, a method for referencing data in a table. , are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. The ratings do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a pi subscript. Pi ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a pi subscript are not subject to potential CreditWatch listings. Ratings with a pi subscript generally are not modified with 'plus' or 'minus' designations. However, such designations may be assigned when the insurer's financial strength rating is constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by sovereign risk Sovereign Risk The risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts. or the credit quality of a parent company or affiliated group, Standard & Poor's said. -- CreditWire |
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