Amedex Insurance Co. Asgnd BBB+ Fin Strgth Rtg by S&P.

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/25/98-- Standard & Poor's today assigned its triple-'B'-plus financial strength and counterparty credit ratings to Amedex Insurance Co. (AIC). The Miami-based insurer provides major medical coverage to the high net worth individual in the Latin American and Caribbean market. The company's rating is based upon the good business position, strong operating performance, good capitalization, and favorable regulatory environment. Offsetting the strengths somewhat, is the uncertain market environment.

Major rating factors include:

-- Good business position: Amedex Insurance Co. serves a unique

market niche providing strictly major medical coverage to the Latin American and Caribbean market. Accounting for its Third party Administrator (TPA), USAMedical, AIC provides insurance to over one million members. The company's network includes 3,800 hospitals and more than 300,000 physicians throughout the U.S. and abroad;

-- Strong operating performance: AIC's operating performance is

strong. The company earned statutory pre-tax income of $3.3 million in 1997, equating to a return on revenue (ROR) of 13.4%, compared to pre-tax income of $1.0 million in 1996 with an ROR of 20.1%. AIC has not experienced a quarterly underwriting loss since 1987. Through the first quarter of 1998, AIC earned statutory pre-tax income of $1.4 million equating to an ROR of 14.7%. Standard & Poor's expects year-end 1998 pre-tax earnings of approximately $4.0 with an ROR of approximately 11.0%;

-- Good capitalization: Standard & Poor's views AIC's capitalization

as good, with a Standard & Poor's capital adequacy ratio (CAR) of 153.9% as of December 1997. AIC has done an excellent job of growing its statutory capital from $2.2 million in 1993 to $6.2 million in 1997. Standard & Poor's anticipates that consistent earnings will grow statutory capital to between $9.0 and $10.0 million by year-end. The company maintains a conservative investment portfolio which should provide good capital preservation;

-- Favorable regulatory environment: Because AIC's products are sold

outside of the U.S., they have much greater flexibility in product design and rating structures that are both advantageous and adaptable to the changing needs of the market;

-- Uncertain market environment: While the company has good

operating results, the market environment in Latin America and the Caribbean remains uncertain; and

-- Limited flexibility: Amedex Insurance Co. has a relatively small

surplus position of $7.2 million as of March 1998, which may limit its flexibility.

OUTLOOK: STABLE Standard & Poor's expects:

-- Capital is expected to grow to $9.0-$10.0 million with a

corresponding capital adequacy ratio of approximately 165% to 175%;

-- Enrollment is expected to grow by approximately 15% annually over

the next three years; and

-- Standard & Poor's expects year-end 1998 pre-tax earnings of

approximately $4.0 with an ROR of approximately 11.0%.

-- CreditWire

    CONTACT: Glenn Schuermann, New York (1) 212-208-1236
              Arun N Kumar, New York (1) 212-208-8453
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