Fitch Affirms PMA Ratings; Outlook Stable.CHICAGO -- Fitch Ratings has affirmed the issuer default rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) and senior debt rating of PMA PMA (papillary-marginal-attached), n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation. PMA Progressive muscular atrophy Capital Corp. (PMA) at 'BB-' and 'B+' respectively. Fitch also has affirmed the insurer financial strength (IFS) ratings of the three active primary insurance subsidiaries collectively referred to as PMA Insurance Group, (PMAIG): Pennsylvania Manufacturers Association Insurance Company (PMAIC); Pennsylvania Manufacturers Indemnity Company (PMIC PMIC Practice Management Information Corporation PMIC Power Management Integrated Circuit PMIC Precious Metals Indicator Code PMIC Psychiatric Medical Institute for Children (Glenwood, IA) ); and Manufacturers Alliance Insurance Company (MAIC MAIC Mine Action Information Center MAIC Mycobacterium Avium Intracellulare Complex MAIC Mid Atlantic Impreza Club MAIC Measure, Analyse, Improve, Control (Six Sigma breakthrough strategy) ) at 'BBB-.' Lastly, Fitch has affirmed the 'B-' IFS rating of PMA Capital Insurance Company's (PMA Re) run-off 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. subsidiary. All Rating Outlooks are Stable. E[acute accent]Fitch last reviewed and affirmed all of PMA's ratings on May 8, 2006. That is the date when the Pennsylvania Department of Insurance (PA DOI (Digital Object Identifier) A method of applying a persistent name to documents, publications and other resources on the Internet rather than using a URL, which can change over time. ) approved a $73.5 million extraordinary dividend from PMA Re to PMA. Since that time, Fitch met with senior management for an annual review of the ratings. In addition, PMA filed an 8k on May 12, 2006 stating that it will redeem $35 million of the 6.50% senior secured convertible debentures due 2022. E[acute accent]PMA's main challenge is to smoothly manage the run-off of PMA Re and Caliber One operations while simultaneously restoring PMAIG's competitive profile. Fitch recognizes this is a process that will take time and prudence; however, Fitch notes that PMA is starting to build positive momentum in its operations. E[acute accent]PMA's ratings continue to be based on the company's expertise in worker's compensation, strong risk based capital, and conservative investment portfolio. Offsetting these factors are the company's concentration in Pennsylvania Worker's compensation, run-off operation uncertainty, and the competitive environment of chosen markets. E[acute accent]As of March 31, 2006, PMAIG had net premiums written of $113.4 million, compared with $105.5 million for the same period in the prior year and a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). combined ratio of 102.1%, compared with a 103.4% prior year. E[acute accent]PMA Capital Insurance Company E[acute accent]-- Insurer financial strength affirmed at 'B-'/Stable. E[acute accent]Manufacturers Alliance Insurance Co. E[acute accent]-- Insurer financial strength affirmed at 'BBB-'/Stable. E[acute accent]Pennsylvania Manufacturers Association Insurance Co. E[acute accent]-- Insurer financial strength affirmed at 'BBB-'/Stable. E[acute accent]Pennsylvania Manufacturers Indemnity Co. E[acute accent]-- Insurer financial strength affirmed at 'BBB-'/Stable. E[acute accent]PMA Capital Corp. E[acute accent]-- Issuer default rating affirmed at 'BB-'/Stable; E[acute accent]-- Senior debt rating affirmed at 'B+'/Stable; E[acute accent]-- $57.5 million senior notes, 8.5% due June 15, 2018; E[acute accent]-- $79 million convertible debt, 6.5% due Sept. 30, 2022; E[acute accent]-- $0.7 million convertible debt, 8.5%, due Sept. 30, 2022. E[acute accent]Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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