Printer Friendly

BEST LOWERS RATING OF CANADA'S ASSUMPTION MUTUAL LIFE

 OLDWICK, N.J., Jan. 17 /PRNewswire/ -- Effective immediately, the A.M. Best Company has lowered the "A" (Excellent) Best's Rating of Assumption Mutual Life Insurance Company, Moncton, New Brunswick, CN, to "A-" (Excellent).
 The rating action reflects the company's below-average earnings performance, its continued concentration in mortgage holdings in the province of New Brunswick and the amount of underperforming real estate at the subsidiary level. Although these issues have adversely impacted the overall profitability of the company, management has implemented cost containment initiatives in an effort to improve overall earnings levels. Nevertheless, the rating change reflects the challenges the company faces as it works to reduce unit costs to more competitive levels.
 The rating continues to recognize the adequate level of capitalization and the strong niche position that the company within the Francophone population of New Brunswick and Quebec. It also reflects the proactive role management has taken to improve the overall operations of the company. During 1993, Assumption Mutual restructured its branch distribution system by consolidating and eliminating several agency offices, which will continue through 1994 to improve overall expense efficiencies. The company also is in the process of divesting itself of real estate subsidiaries in an effort to reinvest in more predictable investment categories.
 Additionally, there is concern that the markets in which the company has been most active will be facing severe competitive challenges in the future. Management is attempting to address this issue by developing an efficient infrastructure, expanding through its life insurance subsidiary, Mountain States Life Insurance Company of America, Denver. This insurer received an initial Best's Rating of "B++" (Very Good), also effective immediately.
 Assumption Mutual demonstrated its support towards Mountain States' operations with a $2 million capital contribution in 1991. Future contributions are anticipated in order to support growth and maintain favorable risk-adjusted capitalization ratios.
 -0- 1/17/94
 /CONTACT: Rhonda J. Ruch of A.M. Best, 908-439-2200, Ext. 5684/


CO: Assumption Mutual Life Insurance Company ST: New Brunswick IN: INS SU: RTG

PS -- NY027 -- 2426 01/17/94 09:55 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 17, 1994
Words:339
Previous Article:LOW RATES TRIGGER FLURRY OF HOME PURCHASES IN OCTOBER, ACCORDING TO NATIONAL ASSOCIATION OF REALTORS
Next Article:NINE PROPERTIES ARE SPARKLING ADDITIONS TO AAA FIVE DIAMOND LIST
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters