Crusader Insurance Co. Assigned 'BBBpi' Rating by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's-- Aug. 26, 1999--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 triple-'Bpi'financial strength rating to Crusader Insurance Co. Headquartered in Woodland Hills, Calif., Crusader Insurance is licensed in five states. With $37.6 million in surplus, it is a medium-sized 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. , whose major line of business is commercial multiple peril The designated contingency, risk, or hazard against which an insured seeks to protect himself or herself when purchasing a policy of insurance. Among the various types of perils for which insurance coverage is available are fire, theft, illness, and death. PERIL. . The company commenced operations in 1985, and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). is the principal state in which it operates. The following factors are incorporated in the rating:
-- Crusader Insurance's capitalization is extremely strong, as
indicated by Standard & Poor's capital adequacy ratio of
more than 300%.
-- The company's rating is based on stand-alone
characteristics.
-- Crusader Insurance's operating performance is excellent. Its
risk-adjusted return on revenue is 20%.
-- The company has a history of volatility in premium income.
-- The company operates in lines of insurance that may be
subject to liability claims related to the Year 2000 (Y2K)
computer problem. Although this risk cannot be explicitly
factored into the company's rating at this time, Standard &
Poor's believes that related claims could negatively affect
the insurer's earnings over the next 12 to 36 months.
-- Geographic and product line concentration is a rating
factor.
'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 Copyright 1999, Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. |
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