Printer Friendly
The Free Library
5,670,445 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

S&P Affirms 'AAA' Rtgs on Standard Life; Otlk Stable.


Business Editors

LONDON--(BUSINESS WIRE)--Standard & Poor's

July 24, 2000-- Standard & Poor's today 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.
 its triple-'A'-long-term counterparty Counterparty

The other participant, including intermediaries, in a swap or contract.
 credit and insurer financial strength ratings on The Standard Life Assurance Co. (Standard Life), the largest mutual life insurance company in Europe. At the same time, Standard & Poor's affirmed its 'A-1+' short-term commercial paper rating on Standard Life Assurance Co. Funding Inc., based on the unconditional and irrevocable Unable to cancel or recall; that which is unalterable or irreversible.


IRREVOCABLE. That which cannot be revoked.
     2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is
 guarantee of Standard Life. The outlook is stable.

The ratings are based on the company's extremely strong capitalization, extremely strong business position, very strong operating performance, and high-quality service standards.

Major rating factors:

-- Extremely strong capitalization. Standard Life's capitalization is extremely strong according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Standard & Poor's U.K. life risk-based capital model. Traditional measures of capital adequacy also demonstrate the company's position as one of the best-capitalized U.K. life offices; minimum margin coverage was 6.3 times (x) at year-end 1999, up from 6.1x at year-end 1998. This capital strength enables Standard Life to maintain a high equity backing ratio for the benefit of its with-profits policyholders, without threatening the company's financial strength.

-- An extremely strong business position. Standard Life is the second-largest U.K. life office (based on 1999 data), with a U.K. life and pensions market share of about 6.5%. The company was the leading provider in the independent financial adviser (IFA Immunofluorescent assay (IFA)
A blood test sometimes used to confirm ELISA results instead of using the Western blotting. In an IFA test, HIV antigen is mixed with a fluorescent compound and then with a sample of the patient's blood.
) sector in 1999, with a market share of more than 10%. The group also has a very strong franchise in the Canadian and Irish life markets and is increasing its geographic diversity through operations in Germany and Spain. Overseas business accounted for 27.5% of total life and pensions new business in 1999 (24.7% in 1998) and this percentage is expected to increase, reflecting the strong growth potential of these overseas operations.

-- Very strong operating performance. The closure of the appointed representative sales channel in the U.K. and the career agency salesforce in Canada demonstrate Standard Life's focus on efficient and profitable product distribution. This efficiency in new business generation is demonstrated by an acquisition expense ratio of 51.5% in 1999, which compares favorably fa·vor·a·ble  
adj.
1. Advantageous; helpful: favorable winds.

2. Encouraging; propitious: a favorable diagnosis.

3.
 with that of peers and the market average of more than 70%. Noncommission expense control also is very strong, while its expenses-to-assets ratio of 1.1% is about one-half the industry average.

-- High-quality service standards. Standard Life continues to receive industry recognition for its high-quality service standards, with awards for 'Life & Pensions Service Provider of the Year' from Financial Adviser, 'Company of the Year' from Money Marketing, and 'Life & Pensions Company of the Year' at the Personal Investment Marketing Show (PIMS PIMS Pacific Institute for the Mathematical Sciences
PIMS Penalty Minutes (hockey)
PIMS Pakistan Institute of Medical Sciences
PIMS Profit Impact of Market Strategy
PIMS Project Information Management System
). This is a clear competitive advantage for Standard Life in the IFA market.

OUTLOOK: STABLE

Extremely strong capitalization will remain a key competitive strength for Standard Life, with minimum margin coverage expected to average between 5.5x-6.0x over the long term. A subdued sub·due  
tr.v. sub·dued, sub·du·ing, sub·dues
1. To conquer and subjugate; vanquish. See Synonyms at defeat.

2. To quiet or bring under control by physical force or persuasion; make tractable.

3.
 pensions market is expected in 2000 and early 2001, reflecting uncertainty in the run up to stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property.  pensions. This is expected to result in flat pensions sales for Standard Life in 2000. However, the introduction of a with-profit bond--previously a gap in Standard Life's product range--combined with an innovative with-profit annuity, will lead to market share gains over the medium to long term. Standard Life's competitive advantage in expense efficiency and service standards is also expected to be maintained, Standard & Poor's said.---CreditWire

Copyright 2000, Standard & Poor's Ratings Services Ratings Service

A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends.
 
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jul 24, 2000
Words:564
Previous Article:SAQQARA Systems, Inc. Appoints David Spenhoff Vice President of Marketing; SAQQARA Strengthens Executive Management Team with Appointment of Software...
Next Article:Centura Software Secures Major Contract with State Government of Mexico City.
Topics:



Related Articles
S&P Affirms AMP Rtgs, Outlook To Negative.
S&P Affirms Northwestern Mutual & Units Rtgs.
S&P Comments on Standard Life Demutualization Vote.
Fitch Affirms Northwestern Mutual's Ratings.
Fitch Affs Ratings Of Sun Life Assurance Company Of Canada.
Fitch Affirm's Manulife's Ratings.
Fitch Ratings Affirms Northwestern Mutual.
Fitch Ratings Affirms Teachers Ins. & Annuity 'AAA' Ratings.
Fitch Ratings Affs Western & Southern 'AAA' IFS Rtgs; Rtg Outlook Stable.
Fitch Lwrs Rtgs Of Jefferson-Pilot Group As Part of Industry Review.

Terms of use | Copyright © 2009 Farlex, Inc. | Feedback | For webmasters | Submit articles