Correct: Fitch Downgrades 35 Life Insurance Groups Following Industry-Wide Review.Business Editors CHICAGO--(BUSINESS WIRE)--Sept. 19, 2002 (This is an amended version of an earlier press release. Ratings for 35 life insurance groups were downgraded impacting 42% of Fitch's life insurance ratings universe). Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has completed a comprehensive review of all of its ratings for the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. life insurance industry, and has downgraded ratings for 35 life insurance groups. The downgrades impacted the ratings of 42% of Fitch's life insurance ratings universe, and affected companies with a combined $1.1 trillion in assets. Highlights of Fitch's rating actions, which affected both insurer financial strength (IFS) and debt ratings, are listed below. Details on a teleconference that Fitch is hosting at 2:00PM EST EST electroshock therapy. EST abbr. electroshock therapy today to discuss the review are also included below. The comprehensive industry review was announced on August 14, 2002. It is the result of Fitch's belief that recent adverse performance within the investment markets, together with unfavorable competitive and product trends inherent in Fitch's long standing Negative Rating Outlook for the life insurance industry, required an accelerated recognition of such trends into ratings levels generally. The mean IFS rating within Fitch's ratings universe has fallen from 'AA' (low in range) to 'AA-' (high in range), and the mean senior debt rating has fallen from 'A' to 'A-'. These ratings still imply a very high level of financial strength and credit quality for the industry. Key methodology enhancements that drove many of the rating actions include: -- A reassessment of product risk within the industry, with higher risk recognition for variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. and other capital markets-intensive products; -- Implementation of higher capital guidelines at all ratings levels recognizing both higher volatility in capital and slower rates of capital formation throughout the industry; and -- Tightening of various fundamental company characteristics expected at each rating level to align better with Fitch's prospective views of heightened industry risks driven by the competitive environment. As a result of today's ratings actions there will be greater stability in Fitch's life ratings in the near-to-intermediate term. Accordingly, Fitch has revised its industry Rating Outlook to Stable from Negative. Fitch will comment in more detail on its industry outlook in January 2003 with the publication of its annual 'Review & Outlook: 2002/2003 U.S Life Insurance Industry' report. Fitch will host a teleconference at 2:00PM EST to discuss the comprehensive review. Participants should call 1-877-897-0442 and international participants should dial 1-706-643-7396 five minutes prior to the beginning of the call and give the title of the call 'Fitch'. The call leader is Julie Burke. Fitch has issued a special report titled 'Comprehensive Life Insurance Industry Review (North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. )' that summarizes in more detail the rationale for the comprehensive review, how Fitch approached the review and the results of the review. For a copy of the report, visit the Fitch Ratings web site at 'www.fitchratings.com' or contact the Rating Desk at 1-800-893-4824. The following is a highlighted summary of the ratings of each North American life insurance organization rated by Fitch, grouped by IFS rating category. The ratings shown in this exhibit include the IFS rating of the group and/or its largest operating subsidiaries. The senior debt ratings are for the parent holding company, unless there is no holding company, in which case they are for the primary operating company operating company A business that engages in transactions with outsiders. . Other ratings listed include long term issuer (LT), subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". (Sub), and surplus notes (SN) ratings. Entity; IFS Actions & Outlooks; Debt Actions & Outlooks AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. IFS Ratings --AIG Life Companies; 'AAA'/Affirm/Stable; 'AAA'/Affirm/Stable. --Massachusetts Mutual; 'AAA'/Affirm/Stable; 'AA' (SN)/Affirm/Stable. --New York Life; 'AAA'/Affirm/Stable; 'AA' (SN)/Affirm/Stable. --Northwestern Mutual; 'AAA'/Affirm/Stable; 'AAA'/Affirm/Stable. -- State Farm Life; 'AAA'/Affirm/Stable; 'NA'. -- TIAA; 'AAA'/Affirm/Stable; 'AAA'/Affirm/Stable. AA+ IFS Ratings -- Aegon USA; 'AA+'/Remain RW Neg; 'AA-'/Remain RW Neg. -- Great-West Life; 'AA+'/Dwngrd/Stable; 'AA-'/Dwngrd/Stable. -- Jackson National Life Jackson National Life Insurance is a U.S. life assurance company that is a subsidiary of the UK based insurer, Prudential Plc. Founded in 1961, Jackson is headquartered in Lansing, Michigan, and has over a thousand employees in the region. ; 'AA+'/RW Neg; 'AA-' (SN)/RW Neg. -- Jefferson-Pilot; 'AA+'/Dwngrd/Stable; 'AA-'/Dwngrd/Stable. -- Manufacturers Life; 'AA+'/Dwngrd/Stable; 'AA-' (Sub)/Dwngrd/Stable. -- Pacific Life; 'AA+'/Affirm/Stable; 'AA-' (SN)/Affirm/Stable. -- Thrivent; 'AA+'/Affirm/Stable; 'NA'. -- Western-Southern; 'AA+'/Dwngrd/Stable; 'NA'. AA IFS Ratings -- AFLAC AFLAC American Family Life Assurance Company AFLAC American Family Life Assurance Company of Columbus AFLAC Apologies For Lack of Audi Content (Audi listservs) ; 'AA'/Affirm/Stable; 'A+'/Affirm/Stable. -- Cincinnati Financial Cincinnati Financial Corporation (NASDAQ: CINF) offers property and casualty insurance, its main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. ; 'AA'/Affirm/Stable; 'A+'/Affirm/Stable. -- Citigroup Life Cos.; 'AA'/Affirm/Stable; 'NA'. -- Connecticut General; 'AA'/Affirm/Stable; 'A'/Dwngrd/Stable. -- Equitable Life Equitable Life may refer to:
-- GE Capital Assurance; 'AA'/Affirm/Stable; 'A+'/Affirm/Stable. -- Guardian; 'AA'/Dwngrd/Stable; 'NA'. -- Hartford Life; 'AA'/Dwngrd/Stable; 'A'/Dwngrd/Stable. -- IDS Life; 'AA'/Affirm/Stable; 'NA'. -- ING America; 'AA'/Dwngrd/Stable; 'AA-'/RW Neg. -- John Hancock; 'AA'/Dwngrd/Stable; 'A+'/Dwngrd/Stable. -- Lincoln National; 'AA'/Affirm/Stable; 'A'/Dwngrd/Stable. -- Metropolitan Life; 'AA'/Dwngrd/Stable; 'A'/Dwngrd/Stable. -- Minnesota Life The Minnesota Life Insurance Company was founded in St. Paul, Minnesota in 1880 as a mutual insurance company. It was originally organized as a mutual because a general distrust of stockholder-owned businesses prevailed at that time and there was a shortage of people willing to buy ; 'AA'/Dwngrd/Stable; 'A+' (SN)/Dwngrd/Stable. -- Principal; 'AA'/Affirm/Stable; 'A'/Affirm/Stable. -- Sun Life (Canada); 'AA'/Dwngrd/Stable; 'AA-'/Dwngrd/Stable. AA- IFS Ratings -- American United Life; 'AA-'/Affirm/Stable; 'A' (SN)/Affirm/Stable. -- Anthem; 'AA-'/Affirm/Stable; 'A-'/Affirm/Stable. -- Canada Life; 'AA-'/Dwngrd/Stable; 'A+'/Dwngrd/Stable. -- CNA (Certified NetWare Administrator) See Novell certification. Life; 'AA-'/Affirm/Stable; 'BBB'/Affirm/Stable. -- 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; 'AA-'/Dwngrd/Stable; 'A+' (LT)/Dwngrd/Stable. -- Horace Mann; 'AA-'/Affirm/Neg; 'A-'/Affirm/Neg. -- Modern Woodmen; 'AA-'/Dwngrd/Stable; 'NA'. -- Mutual of America Mutual of America Life Insurance Company, also referred to as Mutual of America is a Fortune 1000 mutual company based in New York, New York. Founded in 1945, it is ranked on the Forbes 500 list as the 10th largest insurance company in the United States. ; 'AA-'/Dwngrd/Stable; 'NA'. -- Mutual of Omaha Mutual of Omaha, best known for sponsoring the popular television show Mutual of Omaha's Wild Kingdom, is a Fortune 500 insurance and financial services company headquartered in Omaha, Nebraska. ; 'AA-'/Affirm/Stable; 'NA'. -- Ohio National; 'AA-'/Dwngrd/Stable; 'A-'/Dwngrd/Stable. -- Penn Mutual Penn Mutual traces its beginning to 1847 when it became the seventh mutual life insurance company chartered in the United States. At the time of its organization there was a general distrust of stockholder-owned corporations so it was established as a mutual owned by its ; 'AA-'/Affirm/Stable; 'NA'. -- Phoenix Life; 'AA-'/Dwngrd/Stable; 'A-'/Dwngrd/Stable. -- Protective; 'AA-'/Dwngrd/Stable; 'A-'/Dwngrd/Stable. -- Prudential of America; 'AA-'/Affirm/Stable; 'A'/Affirm/Stable. -- Safeco Life; 'AA-'/Affirm/Stable; 'A-'/Affirm/Stable -- Security Benefit; 'AA-'/Affirm/Stable; 'A' SN)/Affirm/Stable. -- Standard Insurance; 'AA-'/Affirm/Stable; 'A-'/Affirm/Stable. -- UnumProvident; 'AA-'/Affirm/Stable; 'A-'/Affirm/Stable. -- Wellpoint; 'AA-'/Affirm/Stable; 'A-'/Affirm/Stable. A+ IFS Ratings -- Aetna Life & Casualty; 'A+'/Affirm/Neg; 'BBB+'/Affirm/Neg. -- Beneficial Life; 'A+'/Dwngrd/Stable; 'NA'. -- Business Men's Assurance; 'A+'/Dwngrd/RW Evolving; 'NA'. -- CGU CGU Conditions Générales d'Utilisation (French) CGU Claremont Graduate University (Claremont, CA) CGU Chang Gung University (Taiwan) CGU Canadian Geophysical Union Life; 'A+'/Dwngrd/Stable; 'NA'. -- Combined Insurance (Aon); 'A+'/Remain RW Neg; 'A-'/Remain RW Neg. -- Great American; 'A+'/Affirm/Stable; 'BBB+'/Affirm/Stable. -- MONY MONY Mutual of New York (Insurance - Syracuse, NY) ; 'A+'/Dwngrd/Neg; 'BBB+'/Affirm/Neg. -- National Life of Vermont; 'A+'/Dwngrd/Stable; 'A-' (SN)/Dwngrd/Stable. -- Navy Mutual; 'A+'/Dwngrd/Stable; 'NA'. -- Union Central Life; 'A+'/Affirm/Stable; 'A-' (SN)/Affirm/Stable. A IFS Ratings -- Allmerica Financial; 'A'/Affirm/Stable; 'BBB'/Affirm/Stable. -- Delphi; 'A'/Affirm/Stable; 'BBB'/Affirm/Stable. -- Fidelity & Guaranty; 'A'/Dwngrd/Stable; 'NA'. -- Lafayette Life; 'A'/Dwngrd/Stable; 'NA'. -- MTL MTL In currencies, this is the abbreviation for the Maltese Lira. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ; 'A'/Dwngrd/Stable; 'NA'. -- Pan American; 'A'/Affirm/Stable; 'NA'. -- Sage Life; 'A'/Remain RW Evolving; 'NA'. -- Scottish Annuity & Life; 'A'/Affirm/Stable; 'NA'. -- Security Mutual Life; 'A'/Dwngrd/Stable; 'BBB+'(SN)/Dwngrd/Stable. -- Trustmark; 'A'/Dwngrd/Stable; 'NA'. -- UICI; 'A'/Affirm/Stable; 'NA'. A- IFS Ratings -- American Skandia; 'A-'/Dwngrd/Evolving; 'NA'. -- Boston Mutual; 'A-'/Dwngrd/Stable; 'NA'. -- Guarantee Trust; 'A-'/Affirm/Neg; 'NA' BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. + IFS Ratings -- Annuity & Life Re; 'BBB+'/Remain RW Neg; 'NA'. BBB IFS Ratings -- Ceres Group (Continental); 'BBB'/Remain RW Evolving; 'NA'. BB IFS Ratings -- Ceres Group (Central); 'BB'/Affirm/Neg; 'NA'. B IFS Ratings -- Conseco Group; 'B'/Remain RW Neg; 'D'/Affirm. The following are life insurance groups with debt ratings from Fitch that currently have not been assigned IFS ratings, and thus were not including in the list above: Life Group Sr. Debt/LT; Action/Outlook/Watch -- Americo Life; 'BB+'; Affirm/Stable. -- Amerus Life Insurance; 'BBB'; Dwngrd/Stable. -- Nationwide; 'A+'; Affirm/Stable. -- Presidential Life; 'BBB-'; Affirm/Neg. -- RGA RGA Reinsurance Group of America RGA Return Goods Authorization RGA Republican Governors Association RGA Residual Gas Analyzer RGA Royal Garrison Artillery RGA Restricted Growth Association (UK) RGA Rate Gyro Assembly ; 'A-'; Affirm/Stable. -- Torchmark; 'A'; Dwngrd/Stable. Details supporting all of the ratings, Rating Outlook and Rating Watch changes noted above can be found in a series of separate press releases that are being issued later today for each affected life insurance group. Separate press releases are not being issued for life insurers whose ratings remain unchanged. |
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