Civil Service Employees Insur Asgnd 'BBpi' Rtg by S&P.NEW YORK--(BUSINESS WIRE)--Sept. 23, 1998--Standard & Poor's CreditWire 9/23/98 - Standard & Poor's today assigned its double-'Bpi' insurer financial strength rating to Civil Service Employees Insurance Co. Civil Service Employees Insurance is licensed in nine states. Its major line of business is homeowners multiple peril, and it is a member of Civil Service Employees Group, a midsized insurance group with surplus of between $50 million-$100 million. The company commenced operations in 1951, and the principle state in which it operates is California. The following factors were incorporated in the double-'Bpi' rating: -- Capitalization is superior, 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 232.5%. -- The rating is based on the intercompany pool consisting of Civil Service Employees Insurance Co. (66.67%) and CSE (Certified Systems Engineer) See Microsoft certification. Safeguard Insurance Co. (33.33%). -- Historical instability in premium revenues impacts negatively on the rating. -- The company's historical return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). also displays high volatility, a rating factor. This is due, in part, from the company's homeowners exposure to catastrophes and severe weather. -- Policyholder Policyholder An individual who owns an insurance policy. surplus increased 12.2% over 1996 on a statutory basis. `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 con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. 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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