American Republic Insurance Co.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 25, 2003 Credit Rating: Api/--/-- On Nov. 25, 2003, Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. affirmed its 'Api' counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit and financial strength ratings on American Republic Insurance Co. (American Republic). The ratings reflect its extremely strong capitalization, strong liquidity, good profitability, and significant dependence on the accident and health segment. Major Rating Factors -- American Republic's capitalization is extremely strong with a 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 344% at year-end 2002. Although capital remained flat from 1998-2000, it increased in the last three years at an average rate of 19.5% to $188 million. -- Liquidity is very strong. The liquidity ratio of 670% is supported by an investment portfolio comprised of high-quality bonds (87%), with very little investment exposure to non-investment grade bonds (2%). -- The company's operating performance has been very strong over the past five-year period, as indicated by Standard & Poor's earnings adequacy ratio of 283%. -- The company's business is geographically well-diversified. However, its concentration in accident and health significantly offsets its positive attributes. American Republic is a life and health insurer licensed throughout the U.S., except in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and based in Des Moines, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation). Des Moines (pronounced /dɪˈmɔɪn/ in English, . Established in 1929, American Republic offers a limited range of products. Accident and health lines such as major medical insurance and long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. are the company's primary products along with a modest amount of term life, universal life insurance, and annuities and Medicare Supplement. Ratings 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. Ratings with a 'pi' subscript 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 List American Republic Insurance Co. Counterparty credit rating Api/--/-- Financial strength rating Api Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar A set of buttons or graphic images typically in a row or column used as a central point that link you to major topic sections on a Web site. If the navigation bar is a single graphic image with multiple selections, it is known as an imagemap. See imagemap. , select Credit Ratings Lists. Standard & Poor's ratings appear alphabetically al·pha·bet·i·cal also al·pha·bet·ic adj. 1. Arranged in the customary order of the letters of a language. 2. Of, relating to, or expressed by an alphabet. . |
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