Fitch Affirms Navy Mutual Aid Association's 'AA-' Rating.Business Editors CHICAGO--(BUSINESS WIRE)--Feb. 6, 2001 Fitch fitch: see polecat. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the 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 of Navy Mutual Aid Association (NMAA NMAA National Museum of American Art NMAA New Mexico Activities Association NMAA Nursing Mothers Association of Australia NMAA National Museum of African Art NMAA National Multimedia Association of America NMAA Navy Mutual Aid Association NMAA Night Master-At-Arms ) at 'AA-'. The Rating Outlook is Stable. This very strong rating is based upon Navy Mutual Aid Association's solid niche position as a provider of mainly interest-sensitive and term life insurance to active, reserve and retired members of the U.S. Navy, U.S. Marine Corps, U.S. Coast Guard, U.S. Public Health Service and National Oceanic and Atmospheric Administration Noun 1. National Oceanic and Atmospheric Administration - an agency in the Department of Commerce that maps the oceans and conserves their living resources; predicts changes to the earth's environment; provides weather reports and forecasts floods and hurricanes and and their families. Among the Association's strengths are its excellent capital position, outstanding persistency and mortality, a low expense ratio, and its focused and unwavering adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence to its mission of serving its members. NMAA's service to its members is reflected in its very attractive crediting rates for participating policyholders' accounts and premium refunds to term policyholders. Management has great flexibility in setting the crediting rate and funds them with a combination of net operating gains and realized capital gains. NMAA's investment portfolio has very low credit risk as 99% of bonds were investment grade at September 2000, and exposure to mortgages and real estate is less than 3% of invested assets. Bonds comprised approximately 79% of invested assets. Common stocks typically range between 6% and 8% of invested assets, and represent a diversified diversified (di·verˑ·s group of holdings. While the long duration of the bond portfolio increases NMAA's interest rate risk, it is considered appropriate for the association's liability profile. Fitch views NMAA's liquidity and asset liability management to be sound. Navy Mutual Aid Association, which is headquartered in Arlington, Va., reported total admitted assets of $1.4 billion and adjusted surplus of $139 million at Dec. 31, 1999. The association has over 96,000 members and over $8.0 billion of insurance in force as of September 2000. Entity/Issue/Type Action Rating/Outlook Navy Mutual Aid Association --Insurer financial strength Affirm 'AA-'/Stable |
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