CUMIS Insurance Society Assigned 'Api' Rtg by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 7/30/98--Standard & Poor's today assigned its single-'Api' insurer financial strength rating to CUMIS CUMIS Cambridge University Moving Image Studio (UK) Insurance Society Inc. CUMIS Insurance Society is licensed in all U.S. states A U.S. state is any one of the fifty subnational entities of the United States, although four states use the official title "commonwealth". The separate state governments and the federal government share sovereignty, in that an American is a citizen both of the federal entity and . The company's major line of business is fidelity insurance An agreement whereby, for a designated sum of money, one party agrees to guarantee the loyalty and honesty of an agent, officer, or employee of an employer by promising to compensate the employer for losses incurred as a result of the disloyalty or dishonesty of such individuals. , and it is a member of CUNA Cuna Chibchan-speaking Indian people who once occupied the central region of what is now Panama and the neighbouring San Blas Islands and who still survive in marginal areas. In the 16th century they lived in federated villages under chiefs who wielded considerable power. Mutual Group, which is a large insurance group with surplus in excess of $100 million. CUMIS Insurance Society commenced operations in 1960. The following factors were incorporated in the single-'Api' rating: -- Capitalization is considered extremely strong, as indicated 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 294.9%; -- The company consistently posts above-average profit margins, with average return on revenue of 15.1% from 1992 to 1997; -- The company has strong liquidity, with a liquidity ratio of 156.2%; -- Policyholders' surplus for the company has more than doubled to $305.9 million in 1997 from $136.7 million in 1992; and -- The company's rating is limited to the rating of its parent, CUNA Mutual Insurance Society; 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 published financial information and additional information in the public domain. The ratings do not reflect in-depth meetings with an insurer's management nor do they incorporate material nonpublic information Nonpublic information Information about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading. , 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 an insurer's financial security occurs. The pi rating process covers U.S insurers to which Standard & Poor's previously assigned quantitative ('q') ratings, and may include information beyond that used to derive the previous quantitative-only ratings. Pi ratings are not modified with 'plus' or 'minus' designations, nor are they subject to potential CreditWatch listings, Standard & Poor's said. -- CreditWire
CONTACT: Ronald S Lettofsky, 212/208-1742
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