Fitch Downgrades PMA Re's IFS Rtg to 'CC'; Remains on Watch Negative.Business Editors CHICAGO--(BUSINESS WIRE)--Jan. 22, 2004 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has downgraded the insurer financial strength (IFS) 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 Insurance Company (PMA Re) to 'CC' from 'BB+' and the rating remains on Rating Watch Negative. No action was taken on the senior debt rating and the IFS ratings of the primary insurance subsidiaries, listed below. The 'B+' senior debt rating of parent holding company, PMA Capital Corp. (PMA) and the 'BBB-' insurer financial strength ratings of PMA's three active primary insurance subsidiaries, are unchanged, and remain on Rating Watch Negative. These ratings will remain on Rating Watch pending an assessment of the longer term competitive position and earnings potential of PMA's primary workers compensation operations following recent rating downgrades and the performance of PMA Capital in run-off. This rating action considers previous announcements of PMA Re along with PMA Re's filing of an 8-K report with the Securities and Exchange Commission that announced they have reached an agreement with the Pennsylvania Insurance Department on their planned exit from the 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. business. As required by the mutually agreed terms, PMA Re has agreed to seek prior written regulatory approval of certain actions including: entering into any new reinsurance contracts, incur any debt, make any payments or distributions to affiliates, withdraw any money from PMA Re's bank account or make any transfer of assets The conveyance of something of value from one person, place, or situation to another. The law recognizes that persons are generally entitled to transfer their assets to whomever they wish and for whatever reason. The most common means of transfer are wills, trusts, and gifts. exceeding five percent of the fair market value of cash and invested assets, which totaled $59.7 million, as of Sept. 30, 2003, or alter its ownership structure. Additionally, PMA Re has also agreed to engage an independent actuary actuary One who calculates insurance risks and premiums. Actuaries compute the probability of the occurrence of such events as birth, marriage, illness, accidents, and death. to review reserves. Entity/Issue/Type Action Rating/Watch PMA Capital Insurance Company -- Insurer financial strength Downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. 'CC'/Negative. Manufacturers Alliance Insurance Co. -- Insurer financial strength No Action 'BBB-'/Negative. Pennsylvania Manufacturers Association Insurance Co. -- Insurer financial strength No Action 'BBB-'/Negative. Pennsylvania Manufacturers Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Co. -- Insurer financial strength No Action 'BBB-'/Negative PMA Capital Corp. -- Senior Debt No Action 'B+'/Negative. |
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