Commercial Union Insurance Assigned 'Api' Rtg by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 9/2/98-- 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 Commercial Union Insurance Co. Commercial Union Insurance is licensed in all states, and commenced operations in 1871. The company is a member of the CGU CGU Conditions Générales d'Utilisation (French) CGU Claremont Graduate University (Claremont, CA) CGU Chang Gung University (Taiwan) CGU Canadian Geophysical Union Insurance Group (formed by the June June: see month. 1998 merger between Commercial Union PLC and General Accident Fire & Life Assurance Corp. PLC), a large U.K.-based insurance group with a presence in more than 50 countries. Commercial Union is a multiline writer. It participates in an interaffiliate pool with five other group members. The company meets Standard & Poor's rating criteria for pool members, and therefore it is assigned the single-'Api' rating of qualifying members of the Commercial Union pool. The following factors were incorporated in the single-'Api' rating of qualifying pool members: -- 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. , as measured by Standard & Poor's capital adequacy ratio of 205.9%, is extremely strong. -- Liquidity is viewed as satisfactory, with a Standard & Poor's liquidity ratio of 108.7%. -- The rating of qualifying pool members is limited to the rating of Commercial Union Assurance Co. PLC (rated single-'Api'), the ultimate parent. `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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