Printer Friendly

1992 BEST'S RATINGS ASSIGNED TO 380 COMPANIES INCLUDING 23 LARGE INSURERS

 1992 BEST'S RATINGS ASSIGNED TO 380 COMPANIES
 INCLUDING 23 LARGE INSURERS
 OLDWICK, N.J., June 22 /PRNewswire/ -- A.M. Best Company today released the 1992 Best's Ratings for 380 insurance companies, including 11 large life/health insurers and 12 large property/casualty insurers.
 Based on the evaluation of year-end 1991 financial results and subsequent relevant events, 1992 Best's Ratings will be released on a weekly basis through Monday, July 6. To date, ratings have been released for 876 life/health insurers and 1,325 property/casualty insurers. Best's Ratings are continuously monitored throughout the year with formal rating reviews performed on annual, six-month and nine-month financial results.
 Brief rating rationales are presented below for the 23 large insurance entities.
 Allendale Group, Johnston, R.I. was assigned a 1992 Best's Rating of "A+" (Superior). The group's financial strength was affirmed, and its rating level was upgraded from "A+" to "A++". This rating applies to the group's three inter-company pool members.
 The group, led by Allendale Mutual Insurance Company, continued to produce outstanding profitability with a five-year average combined ratio of 100. Very strong underwriting results of on-going business were tempered by conservative reserve strengthening measures taken by management on its discontinued lines, which added 16 points to the group's combined ratio of 113 in 1991. The group has maintained very conservative leverage and liquidity with $333 million in writings supported by $678 million in surplus.
 The Allendale Group, which is a member of the Factory Mutual System, is a commercial lines insurer specializing in property insurance coverages for commercial properties worldwide. The group is one of the 100 largest property/casualty underwriters in the United States and has $1.3 billion in assets.
 American United Life Insurance Company, Indianapolis, was assigned a 1992 Best's Rating of "A+" (Superior). The company's superior financial strength was affirmed, and its rating level of "A+" was unchanged.
 This rating assignment reflects the company's well established position in the group pension market, favorable overall earnings performance, and excellent balance sheet quality and capitalization. Over the past five years, operating profits totaling $106.6 million have enabled American United Life to nearly double its surplus base. The company maintains a strong liquidity position supported by good operating cash flow and over $2.8 billion of investment-grade bonds, cash and short-term securities held at year-end 1991. American United Life ranks among the 70 largest life/health insurers in the United States when measured by total assets.
 California Casualty Group, San Mateo, Calif. was assigned a 1992 Best's Rating of "Qualified A" (Excellent). The group's financial strength was affirmed, and its rating level of "A" was unchanged. This rating applies to the group's four inter-company pool members.
 The pool, led by the California Casualty Indemnity Exchange, a reciprocal exchange, has maintained good profitability as evidenced by an average operating ratio of 95 over the past four years. Operating earnings, combined with investment gains, have increased policyholders' surplus by 38 percent to $155 million since year-end 1987 and have more than supported premium volume that has declined 5 percent during that period to $325 million. Leverage measures have improved substantially in recent years. Short-term liquidity measures are lower than industry levels but are enhanced by the pool's strong cash flows.
 California Casualty Group, one of the 100 largest property/casualty groups in the United States, writes personal and commercial lines for affinity groups on a direct basis in California and has $681 million in assets.
 California State Auto Association Inter-Insurance Bureau, San Francisco, was assigned a 1992 Best's Rating of "A" (Excellent). The company's excellent financial strength was affirmed, and its rating level of "A" was unchanged.
 This reciprocal exchange experienced underwriting losses in 1991 due to $100 million of losses from the Oakland fire. Nevertheless, the exchange continued its payment of historically large dividends to subscribers and was able to increase surplus by 16 percent in 1991, mainly from large investment gains. The exchange operates with prudent leverage and conservative liquidity with over $500 million of cash and short-term investment balances.
 California State Auto Association Inter-Insurance Bureau, one of the 40 largest property/casualty companies in the United States, writes personal lines almost exclusively in Northern California and has more than $3.2 billion in assets.
 Christiania General Insurance Group, New York, was assigned a 1992 Best's Rating of "A+" (Superior). The group's superior financial strength was affirmed, and its rating level of "A+" was unchanged. The rating is based on Christiania General Insurance Corporation's results which include its indirect majority ownership interest in Belvedere American Reinsurance Company.
 The group, which produced negative operating income of $3 million in 1991, was negatively impacted by unfavorable loss reserve development and catastrophe losses. Nevertheless, surplus increased 4 percent in 1991 to $166 million from large investment capital gains. Despite 1991's results, profitability has been excellent for the group, which has a five-year average operating ratio of 91. The group's leverage, while increasing in recent years, remained prudent with $163 million of net premiums supported by $166 million of surplus. The group holds high quality investments and maintains sound liquidity, which is enhanced by $41 million of cash and short-term investments.
 -0- 6/22/92
 /CONTACT: Christina Stein of A.M. Best Company, 908-439-2200, ext. 5642/
 /PART 1 OF 4/ CO: A.M. Best Company ST: New Jersey IN: INS SU: ECO


TS -- NY022A -- 2348 06/22/92 11:32 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 22, 1992
Words:899
Previous Article:IONICS RECEIVES $2.2 MILLION ORDER FOR WASTEWATER DISINFECTION SYSTEMS TO SERVE THE MEXICO CITY WATER AUTHORITY
Next Article:FIRST ADD TO MERCK ANNOUNCES PROGRAM FOR PATIENTS ON PROSCAR
Topics:


Related Articles
1992 BEST'S RATINGS ASSIGNED TO 142 COMPANIES INCLUDING TWO LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 223 COMPANIES INCLUDING 15 LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 221 COMPANIES INCLUDING EIGHT LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 156 COMPANIES INCLUDING SEVEN LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 346 LIFE/HEALTH COMPANIES INCLUDING NINE LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 293 PROPERTY/CASUALTY COMPANIES INCLUDING 23 LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 293 PROPERTY/CASUALTY COMPANIES INCLUDING 23 LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 304 COMPANIES INCLUDING 11 LARGE INSURERS
1992 BEST'S RATINGS ASSIGNED TO 380 COMPANIES INCLUDING 23 LARGE INSURERS
S&P Assigns Merrimack Mutual Fire Insurance 'Api' Rtg.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters