American Reliable Insurance Co. Rated 'BBBpi' by S&P.

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire--

Sept. 17, 1999--Standard & Poor's today assigned its triple-'Bpi' financial strength rating to American Reliable Insurance Co.

Based in Scottsdale, Ariz., American Reliable is a stock company licensed in all states and the District of Columbia. Its major products include mobile home, dwelling, personal fire, personal inland marine, commercial auto, and surety programs. The company was formerly a member of American Bankers Insurance Group Inc., which was then acquired by Fortis Inc. in August 1999. It is now a member of the Assurant Group, which is comprised of the American Security Insurance Co. group of companies of Atlanta, Ga. and the American Bankers Insurance Group Inc. Assurant markets to consumers on a wholesale basis through strategic partnerships with major financial institutions, retailers, modular housing manufacturers, and other entities that provide consumer financing as part of their businesses. American Reliable, which markets throughout the U.S. through general and specialty agents, commenced operations in 1952. About 57% of the company's business is in California, Oklahoma, Virginia, Mississippi, and Arizona.

Factors incorporated in the rating analysis are:

-- Although the company is a member of Assurant Group, the rating does not include additional credit for implied group support.

-- American Reliable's capitalization is extremely strong, as indicated by Standard & Poor's capital adequacy ratio of 207.7%.

-- The NAIC risk-based capital ratio is slightly below the industry median at 307.7%.

-- Although profitability is strong with a five-year average return on revenue (ROR) of 9.3%, when adjusted for risk the ROR is lower than that of companies at the single-'Api' rating level.

-- Premiums decreased 5.4% in 1998 to $71.1 million net premiums written and surplus decreased 1% to $47 million.

'Pi' ratings, denoted with a pi subscript, 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 by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said. -- CreditWire