Country Life Insurance Assigned 'AA' pi Rtg By S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/25/98 --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 double-'A' pi 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 Country Life Insurance Co. Country Life Insurance is licensed in 19 states. The company's major line of business is ordinary life insurance, and Country Life Insurance is a member of Country Companies, a large insurance group. The company commenced operations in 1928; the principle state in which it operates is Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . The following factors are incorporated in the double-'A' pi rating: -- With a 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 over 300%, 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 extremely strong; -- Operating performance is good, with an earnings adequacy ratio of 305.6%, as calculated by Standard & Poor's model; -- Liquidity is satisfactory, as measured by a liquidity ratio of in excess of 300%; -- A higher rating requires greater stability in revenue streams as well as premiums and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. fund deposits than those of the company; -- Concentration index is relatively high compared to other companies that are rated higher; and -- Under Standard & Poor's methodology for analyzing insurance groups, this company may not be rated higher than its affiliate, Country Mutual Insurance Co. (rated double-'A' 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 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: Maria G Carvo, New York, 212/208-1938
Ronald S Lettofsky, New York, 212/208-1742
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