S&P Afrms Nippon Life Ins of America Rtg; Otlk Stable.Business Editors NEW YORK--(BUSINESS WIRE)--May 19, 2003 (Standard & Poor's)--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. said today that it affirmed its 'BBB+' counterparty credit and financial strength rating on Nippon Life Insurance Co. of America (NLIA NLIA Native Language Internet Address NLIA Nuclear Labeling Index Analysis NLIA North Lawrence Improvement Association NLIA Newfoundland and Labrador Institute of Agrologists NLIA Northern Lights Impala Association ). The outlook is stable. "The rating on NLIA reflects extremely strong capitalization and liquidity, adequate top-line growth, and a high-quality investment portfolio," noted Standard & Poor's credit analyst Robert Bowen. These factors are offset by NLIA's challenge to improve its profitability as well as the limited competitive advantage in its target business lines. The rating reflects NLIA's standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. characteristics and commitment of parental support, which gives the company financial flexibility as demonstrated by strong capitalization. Standard & Poor's expects NLIA to maintain an extremely strong level of capital adequacy and liquidity. NLIA will continue to focus on expanding its marketing efforts and larger new contracts in its group life and group accident and health insurance business lines. These initiatives are expected to produce double-digit revenue growth for these lines. The exiting of group annuity operations and the termination of 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. agreement with the parent, Nippon Life Insurance Co. (NLI (1) (Natural Language Interface) An English language interface for database queries. Using inference engines, combined with database interfaces and other tools, an NLI system lets anyone access database information without the need for traditional query tools ) are expected to help produce positive operating results. Earnings are expected to remain positive in 2003 and 2004. NLI's financial flexibility is expected to remain very strong. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Fixed Income in the left navigation bar A set of buttons or graphic images typically in a row or column used as a central point that link you to major topic sections on a Web site. If the navigation bar is a single graphic image with multiple selections, it is known as an imagemap. See imagemap. , select Credit Ratings Actions. Copyright 2003, Standard & Poor's Ratings Services |
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