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Aurora National Life Assurance Assigned BBBpi Rating by S&P.



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
, Oct. 8 /PRNewswire/ -- Standard & Poor's today assigned its triple-'Bpi' insurer financial strength rating to Aurora National Life Assurance Co.

Aurora National Life Assurance is licensed in 47 states. The company's major line of business is ordinary life insurance, and it is a member of New California Life Holdings Inc., a large insurance group. The company was created as part of the rehabilitation rehabilitation: see physical therapy.  plan of Executive Life Insurance Co., and the principle state in which it operates is California.

The following factors were incorporated in the rating of triple-'Bpi':

-- Capital adequacy as measured by Standard & Poor's capital adequacy

model is over 300%, which is superior.

-- The company's rating is based on stand-alone characteristics.

-- The company displays more volatility in its premium revenues than peer

companies receiving a higher rating.

-- The ratio of unassigned funds to adjusted capital, as a measure of

retained earnings Retained Earnings

The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet.
, is below that of companies receiving a higher

rating.

-- Operating performance is modest, with the time-weighted return on

assets from 1993-1997 at 1.2%.

'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 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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Copyright 1998 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Geographic Code:1USA
Date:Oct 8, 1998
Words:311
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