Aurora National Life Assurance Assigned BBBpi Rating by S&P.
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 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, is below that of companies receiving a higher
-- Operating performance is modest, with the time-weighted return on
assets from 1993-1997 at 1.2%.
'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