Americo Life Group, Ohio State Life and Investors Guaranty Life ratings placed under review, A.M. Best says.OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 24, 1997--Effectively immediately, A.M. Best Co. has placed its ratings on the Americo Life Group--including the "A" (Excellent) ratings of Great Southern Life Insurance Co. and College Life Insurance of America; the "B+" (Very Good) ratings of Loyalty Life Insurance Co. and National Farmers Union Life Insurance Co.; and the "5" (Average) Financial Performance Ratings See benchmark. of United Fidelity Life Insurance Co. and Financial Assurance Inc., all of Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--under review with developing implications. In addition, the "A-" (Excellent) rating of Ohio State Life Insurance Co. and the "B++" (Very Good) rating of Investors Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Life Insurance Co., both of Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. and members of the Farmers Insurance Group, have been placed under review with developing implications. The "A+" (Superior) Best rating of Farmers New World Life Insurance Co., another wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Farmers Group, is unaffected by this transaction. The rating action follows the announcement by Americo Life, Inc., that it had entered into an agreement with Farmers Group Inc., to acquire the stock of Ohio State Life and Investors Guaranty Life Insurance, two of its wholly owned subsidiaries. The aggregate purchase price for the transaction will be approximately $330.0 million in cash. The transaction will be financed through the use of internal funds internal funds Funds that are raised within a firm. For example, income after taxes and noncash expenses, such as depreciation, provide a firm with funds to use in the acquisition of investments. and the remainder provided by proceeds from a 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. arrangement with an unaffiliated reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. . The life insurance subsidiaries of Americo Life offer a portfolio of individual interest sensitive life insurance products, including interest-sensitive whole life and universal life; single-premium and flexible-premium annuity products and traditional life insurance products, including term and whole life insurance. The subsidiaries of Farmers Insurance Group also focus their marketing activities on the sale of a general portfolio of life insurance coverage, including individual universal life, term and individual single- and flexible-premium deferred-annuity products. The scope of A.M. Best's review will include an evaluation of the financial terms and structure of the transaction, as well as the longer-term strategic implications for the insurance operations of the companies. The ratings will remain under review pending further discussions with management and until the transaction is complete. of $29.7 million. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: Jeffrey Dunsavage (908) 439-2200, ext. 5618 |
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