Agricultural Insurance Co. Assigned `Api' Rtg by S&P Great American Insurance Co.

NEW YORK--(BUSINESS WIRE)--July 23, 1998--Standard & Poor's today assigned its single-`Api' insurer financial strength rating to Agricultural Insurance Co.

The company is licensed in all U.S. states and the District of Columbia. The company commenced operations in 1905. Agricultural Insurance is a member of American Financial Group, a large group engaged primarily in specialty and multi-line property and casualty insurance businesses, and in the sale of tax-deferred annuities and certain life and health insurance products. The company also is a member of the Great American inter-affiliate pool, which is comprised of Great American Insurance Co. (single-`Api' rating) and 11 of its subsidiaries. The pool's major lines of business include commercial multiple peril and workers compensation.

The following factors were incorporated in the single-`Api' rating:

--Standard & Poor's believes the company is a core member of the Great American Pool, and it is therefore assigned the rating assigned to pool members.

-- The pool is well diversified, both geographically and by line of business.

-- Profitability is strong, with return on revenue for 1997 of 12.8%.

-- The pool's capital adequacy ratio of 134.4% limits the rating to single-`Api'.

-- The pool has substantial investments in common stocks, amounting to 118% of surplus, including investments in a number of affiliated insurance companies.

Ratings denoted with a 'pi' subscript are insurer financial strength ratings based on an analysis of published financial information and additional information in the public domain. The ratings do not reflect in-depth meetings with an insurer's management nor do they incorporate material nonpublic information, 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 an insurer's financial security occurs.

The pi rating process covers U.S insurers to which Standard & Poor's previously assigned quantitative (`q') ratings, and may include information beyond that used to derive the previous quantitative-only ratings. Pi ratings are not modified with 'plus' or 'minus' designations, nor are they subject to potential CreditWatch listings, Standard & Poor's said.

Copyright 1998, Standard & Poor's Rating Services

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