Canal Insurance Co. Assigned 'Api' Rating by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/25/98 - Standard & Poor's today assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. its single-'Api' insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. financial strength rating to Canal Insurance Co. Canal Insurance Co. is licensed in 47 states. The company's major line of business is commercial auto liability, and it is a member of Canal Group, which is a large insurance group with surplus in excess of $100 million. The company commenced operations in 1939. The following factors were incorporated it the single-'Api' rating: -- Under Standard & Poor's capital adequacy model 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 superior with a ratio of more than 300%. -- Operating results have been consistently strong with the five-year operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: at an excellent 78.7%. -- Liquidity is strong, as measured by liquidity ratio of 183.1%. -- Canal Insurance Co. ranks in the top 30 nationwide on the basis of net premiums written in the commercial auto market segment. However, net premium growth has moderated since 1995. -- The company has developed a dominant market niche for coverages in the local and long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. trucking business. Although the company is targeting growth in the general liabilities lines, the current business scope is more narrow than higher rated insurers. 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 in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis 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: Alan Koerber, New York (1) 212-208-1528
For more information on criteria or subscriptions:
http://www.ratings.standardpoor.com
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion