American Professionals Insurance Co Rtd 'Bpi' by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 9/23/98-- Standard & Poor's today assigned its single-'Bpi' insurer financial strength rating to American Professionals Insurance Co. American Professionals Insurance Co. is licensed in 23 states. Its major line of business is Homeowners Multiple Peril The designated contingency, risk, or hazard against which an insured seeks to protect himself or herself when purchasing a policy of insurance. Among the various types of perils for which insurance coverage is available are fire, theft, illness, and death. PERIL. , and it is a member of Highlands Insurance Group Inc., a large insurance group, (surplus in excess of $100 million). The company commenced operations in 1959; and the principle state in which it operates is North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . The following factors were incorporated in the rating of single-'Bpi': -- Under Standard & Poor's capital adequacy model 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 superior with a ratio of 280.6%. -- Implicit support provided by the parent company is not assumed in the rating. -- The company's unassigned funds to assets, a measure of retained profits, is negative 78.4%, a limiting factor A factor or condition that, either temporarily or permanently, impedes mission accomplishment. Illustrative examples are transportation network deficiencies, lack of in-place facilities, malpositioned forces or materiel, extreme climatic conditions, distance, transit or overflight rights, . -- The drop in surplus of 46.2% is also a rating factor. -- The company's historical earnings have been very volatile. `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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