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A.M. Best Company Assigns PM Group Life its First Stand-Alone Rating

OLDWICK, N.J., Nov. 25 /PRNewswire/ -- Effective immediately, PM Group Life Insurance Co., Phoenix, has been assigned a stand-alone Best's Rating of "A" (Excellent). Previously, its "A+" (Superior) Rating was consolidated with Pacific Mutual Life Insurance Co., its parent company. This stand-alone rating reflects the company's favorable statutory earnings trends, high- quality balance sheet and strong capitalization. This rating also acknowledges the continued migration of the company's business from large case, experience rated products to a focus on non-participating health insurance with managed care options, stop-loss insurance and other specialty products, and the stabilizing effect such an operational transition has on the company's profitability. However, the rating revision from a consolidated "A+" (Superior) to a stand-alone "A" (Excellent) designation reflects the significant challenges that the company is facing in sustaining growth going forward as increasing competition from managed care concerns and ongoing state regulatory reform efforts will present considerable challenges for companies that have been dependent on indemnity-based health insurance products.

PM Group has terminated its joint venture with Kaiser Permanente of Northern and Southern California to focus on more profitable opportunities. PM Group continues to market and insure joint products with Kaiser's Northwest Region and to administer Kaiser's Medicare point-of-service program in Southern California. A.M. Best expects PM Group Life to maintain its managed care posture to complement its traditional group employee benefit franchise and its growing stop-loss business in force.

A.M. Best Company, established in 1899, is America's oldest and most widely recognized insurance rating and information source.

SOURCE A.M. Best Company
 -0- 11/25/96

/CONTACT: Michael Albanese of A.M. Best, 908-439-2200, ext. 5645/

CO: PM Group Life Insurance Co. ST: Arizona IN: INS SU: RTG

MP -- NYM099 -- 3695 11/25/96 11:42 EST
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Publication:PR Newswire
Date:Nov 25, 1996
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