Fitch Affirms Jefferson-Pilot Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 15, 2001 Fitch has affirmed all of its ratings related to Jefferson-Pilot Corporation (Jefferson-Pilot). These ratings include the 'AAA' insurer financial strength ratings of the insurance subsidiaries (listed below) and the 'F1+' commercial paper rating of Jefferson-Pilot. The Rating Outlook is Stable. The ratings are based on the company's strong competitive positioning with diversified distribution in the life insurance and fixed annuity Fixed Annuity An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal. markets, excellent capitalization, strong operating performance, and a high- quality liquid investment portfolio. Weighed against these positives is the increasingly competitive environment for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. products and lower than expected life insurance production. The company has recently restructured its distribution platform to better serve its top producers and focus on targeted markets. Jefferson-Pilot expects these initiatives, along with a revamped product portfolio to improve overall production and retention. Initial results have been favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . Fitch will continue to monitor the company's progress in meeting these goals. Jefferson-Pilot is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. based in Greensboro, N.C. with total assets of $28.7 billion and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $3.4 billion at Sept. 30, 2001. The company has four primary business lines: individual life insurance, annuity and investment products, group insurance and communications. Jefferson-Pilot is widely diversified in terms of distribution across regional and independent marketing organizations, a career agency force, home service distribution, financial institution marketing, a broker/dealer organization, and annuity marketing organizations. Consolidated, the insurance and broadcasting subsidiaries' GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results produced a very strong 15% operating return on equity during 2000. Jefferson-Pilot's insurance operations are very well capitalized with a consolidated NAIC NAIC See National Association of Investors Corporation (NAIC). risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. (RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). ) of 353% at year-end 2000. The holding company's financial leverage has increased in recent years with the acquisition of several life insurance companies. At Sept. 30, 2001, adjusted leverage totaled 16%, up from 14% at year-end 1999. Fitch expects leverage to remain near current levels. Jefferson-Pilot has a high-quality, liquid investment portfolio. At Sept. 30, 2001, bonds represented 79% of invested assets. The majority of bonds were publicly traded investment-grade corporate bonds. The average quality of the bond portfolio remains high, and it continues to have low default experience. Jefferson-Pilot has been increasing its allocation to mortgage loans, and at the end of the third quarter these investments represented 13% of invested assets. The mortgage portfolio is concentrated in retail properties in the southeast and has had excellent performance. Entity/Issue/Type Action Rating/Outlook Jefferson-Pilot Corporation -- Commercial paper Affirm 'F1+'. Jefferson-Pilot Life Insurance Co. -- Insurer financial strength Affirm 'AAA'/Stable. Jefferson Pilot Financial Insurance Co. -- Insurer financial strength Affirm 'AAA'/Stable. Jefferson Pilot LifeAmerica Insurance Co. -- Insurer financial strength Affirm 'AAA'/Stable. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion