American Continental Insurance Rated 'Api' by S&P.NEW YORK--(BUSINESS WIRE)--Oct. 2, 1998--Standard & Poor's CreditWire 10/2/98 -- Standard & Poor's today assigned its single-'Api' insurer financial strength rating to American Continental Insurance Co. American Continental Insurance is licensed in all states, and commenced operations in 1960. The company is a specialty insurer serving the healthcare industry, providing professional and general liability insurance to hospitals, healthcare systems and healthcare providers. American Continental ranks as the 10th largest medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. writer in the U.S., and the second largest insurer of medical malpractice for healthcare systems. The company is a member of the MMI (Man Machine Interface) See HMI. 1. MMI - Man-Machine Interface. 2. (company) MMI - The company which developed the first Programmable Array Logic devices. MMI was bought by AMD. Companies Group. The following factors were incorporated in the rating of single-'Api' -- Capital is extremely strong, as indicated by Standard & Poor's capital adequacy ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. of 216.2%. -- Liquidity is satisfactory, as indicated by Standard & Poor's liquidity ratio of 110.1%. -- Return on revenue has averaged a satisfactory 12.3% over the past five years. -- The ratio of two year loss development to surplus has displayed volatility over the past five years. -- At 58.2% of surplus, reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. recoverable from non-affiliates is higher than that of insurers at higher rating levels. 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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