Assigns Security National Life Insur 'BBpi' Rtg.NEW YORK--(BUSINESS WIRE)--Aug. 3, 1999-- (Standard & Poor's CreditWire)-Standard & Poor's today assigned its double-'Bpi' financial strength rating to Security National Life Insurance Co. Security National, which is based in Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. , is licensed in 29 states. Its major line of business is individual life insurance. In December 1995, the company was merged with Capital Investors Life Insurance Co., followed by the acquisition of Civil Service Employees Life Insurance Co. (California). The company commenced operations in 1967, and the principal state in which it operates is Utah. Major rating factors include: -- 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 very strong, as measured 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 172%. -- The company's rating is based on stand-alone characteristics. -- Security National's liquidity ratio of 62% suggests that the company could have difficulty in meeting unanticipated large cash demands. -- Profitability is weak, as indicated by a time-weighted return time-weighted return A rate-of-return measure of portfolio performance that gives equal weight to each period included in the study regardless of any differences in amounts invested in each period. on assets of 0.62%. -- The company maintains an aggressive investment profile with respect to risk assets as a percent of capital (101.8%). '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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