Affirms American Financial Life - TX - 'BBBpi' Rtg.NEW YORK--(BUSINESS WIRE)--Standard & Poor's-- Nov. 24, 1999--Standard & Poor's today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its triple-'Bpi' financial strength rating on American Financial Life Insurance Co. (TX). American Financial Life Insurance Co. is a stock company based in Fort Worth, TX and licensed only in Texas. Its major line of business is credit life. The company, which markets itself primarily through direct marketing, commenced operations in 1980. The company is a member of Citigroup Inc. (counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit rating double-'A'-minus), a diversified diversified (di·verˑ·s global 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. organization, and is is wholly owned by Travelers Insurance Co. Standard & Poor's sees the company as a strategically important member of Citigroup Inc., and group support is therefore a factor in the rating. Major Rating Factors: -- Capital adequacy, as measured by Standard & Poor's capital adequacy model, is over 300%, which is extremely strong. Total adjusted capital was $3.4 million at year-end 1998 versus $2.2 million in 1997, an increase of 53.1%. -- The company has extremely strong liquidity, with a Standard and Poor's liquidity ratio in excess of 300%. -- The company has displayed an irregular pattern irregular pattern, n in physical therapy, a classification given to describe symptoms that neither fit into the regular stretch pattern nor regular compression pattern categorizations. of operating earnings which, in conjunction with its small capital base of $3.4 million, limits the rating. -- The geographic and product line concentration for this company is high. Currently, 100% of direct business is in Texas, a limiting 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. They 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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