Fitch Affirms 'BBB-' IFS Rating on Sierra Ins. Group; Withdraws Rating.Business Editors CHICAGO--(BUSINESS WIRE)--April 5, 2004 Following the announcement of the completion of the sale of Sierra Insurance Group (SIG) by Sierra Health Services, Inc. (SIE SIE Sierra Health (stock symbol) SIE Serial Interface Engine SIE Serviciul de Informatii Externe (Romanian: Intelligence Service for the Exterior) SIE Società Italiana di Endocrinologia ) to Folksamerica Holdings Company, Inc., Fitch has affirmed SIG's insurer financial strength (IFS)rating of 'BBB-' and simultaneously withdraws the rating due to lack of user interest. Members of SIG include the following operating companies: California Indemnity Insurance Company, Commercial Casualty Insurance Company, Sierra Insurance Company of Texas and CII CII Confederation of Indian Industry CII Chartered Insurance Institute (UK) CII Construction Industry Institute (University of Texas) CII Council of Institutional Investors Insurance Company. SIG's ratings reflect Fitch's view that Folksamerica Holdings has purchased SIG based on financial rather than strategic considerations, and will manage SIG as a runoff operation. Though Fitch believes SIG likely has sufficient capital to support a successful runoff, Fitch believes it is likely reserves will develop adversely over time based on experience over the last several years, and that capital levels in the future will decline. Further, Fitch would not look for Folksamerica to contribute capital in the future to support the runoff. Folksamerica Holdings is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of White Mountains Insurance Group White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance. External links
See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). assets of $15.0 billion and stockholders' equity of $3.0 billion at December 31, 2003. All ratings of White Mountains and Folksamerica, including Folksamerica Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company's IFS rating of 'A' are unchanged. Entity/Type/Action/Rating/Outlook California Indemnity Insurance Co. Commercial Casualty Insurance Co. CII Insurance Co. Sierra Insurance Company of Texas -- Insurer financial strength Affirm/Withdrawn 'BBB-'/Stable. |
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