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ACACIA MUTUAL LIFE INSURANCE COMPANY AND ACACIA NATIONAL LIFE INSURANCE COMPANY RATED BY DUFF & PHELPS

 CHICAGO, Oct. 18 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the claims paying ability rating of Acacia Mutual Life Insurance Company (Acacia Mutual) at "AA-" (Double-A-Minus). The rating reflects the company's conservative operating leverage, nominal mortgage and real estate exposure and positive management initiatives. Weighed against these positives are the company's moderate size, high expense ratio and large equity exposure. Duff & Phelps has also reaffirmed the claims paying ability rating of Acacia Mutual's wholly owned subsidiary, Acacia National Life Insurance Company (ANLIC) at "AA-" (Double-A- Minus). The rating is based on the strength and support of the parent.
 Acacia Mutual is a life insurance company based in Washington, D.C., with total admitted assets of $846 million and adjusted surplus of $110 million at June 30, 1993. In recent years, positive management initiatives have included closing unprofitable agencies, consolidating administrative systems, reducing staff levels, and installing a cross- functional product development team. These actions have helped to improve the financial strength and reduce the risk profile of the company. In addition, the recent strong performance of Acacia Mutual's non-insurance subsidiaries, Calvert Group, Ltd. (Calvert) and Acacia Federal Savings Bank (AFSB), has enhanced the company's economic capitalization. Although the improvements above are positive, Acacia Mutual realizes the continued importance of improving expense ratios, increasing premium production, and improving synergies between units. The company sells individual life insurance, annuity products, mutual funds and limited banking products through a career field force of approximately 340 agents. ANLIC is a wholly owned subsidiary of Acacia Mutual and had admitted assets of $436 million and adjusted surplus of $27 million at June 30, 1993. This subsidiary sells primarily individual annuity products. ANLIC is managed as part of Acacia Mutual's individual operation. Calvert is Acacia Mutual's investment management company with over $4.6 billion in assets under management. AFSB is Acacia Mutual's savings bank with over $222 million in assets, offering banking products through Acacia Mutual's field force and also serving the Washington metropolitan area.
 Consolidated operating leverage of Acacia Mutual and its subsidiary was 10.03 times at June 30, 1993. This ratio is conservative vs. other companies with a similar business mix. The June 30, 1993, consolidated investment portfolio was made up of bonds at 76 percent, policy loans at 9 percent, unaffiliated equities at 4 percent, cash at 3 percent, mortgage loans at 3 percent, affiliated equities at 2 percent, and joint ventures at 2 percent. Below investment grade bonds represented 11 percent of the bond portfolio. Most of these securities were in the highest tier NAIC 3 category. Equity securities represented a higher than industry proportion of total invested assets. However, the equity portfolio was concentrated in high quality stocks and was well diversified by sector. Acacia Mutual has significantly lower mortgage and real estate exposure than industry peers.
 -0- 10/18/93
 /CONTACT: Julie A. Burke, CPA, of Duff & Phelps Credit Rating Co., 312-368-3158/


CO: Acacia Mutual Life Insurance Company; Acacia National Life
 Insurance Company ST: District of Columbia IN: INS SU: RTG


TW -- NY047 -- 3332 10/18/93 11:12 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
Words:512
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