Printer Friendly

ALEX. HAMILTON LIFE 'AA' CLAIMS-PAYING ABILITY AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, May 13 /PRNewswire/ -- Alexander Hamilton Life Insurance Co. of America's (AHL) 'AA' claims-paying ability is affirmed by Fitch. The rating is based on the company's strong asset quality, adequate capitalization, improving operating profitability, and experienced management team.
 AHL also benefits from its parent company affiliation with Household Finance Corp., a Household International, Inc. subsidiary that provides opportunities to market credit insurance products to various customers of Household subsidiaries. Household International is a diversified financial services company with more than $31.1 billion of GAAP assets at Dec. 31, 1992. Total insurance assets, of which AHL is the largest contributor, represented 19.4 percent of consolidated assets at year-end 1992.
 During the past two years, AHL dramatically reduced its concentration of high-yield bonds and commercial mortgages to less than
5.2 percent of invested assets from 15 percent in 1990. The company's investment strategy has shifted to a bond-based portfolio, with fixed- income securities accounting for 87 percent of invested assets at year- end 1992, up from 77 percent in 1990. More than 96.1 percent of the portfolio is investment-grade quality. As a result of these changes, asset quality is excellent and above industry standards.
 AHL's management is experienced and committed to maintaining capital at prudent levels consistent with its growth needs. At Dec. 31, 1992, adjusted statutory capital of $285 million was managed closely to within an operating leverage (total liabilities to adjusted surplus) of 19.0 times (x), while adjusted capital to adjusted liabilities was maintained above 5.0 percent, appropriate levels given the company's product mix and growth expectations. AHL has not paid a dividend to Household Finance since 1986.
 Operating performance is strong and improving, as management has restructured certain product lines to adhere closely to its pricing and competitive goals. While the annuity business experienced strong premium growth and improved profitability in 1992, the converse occurred in the affiliated credit insurance business. That sector's decline relates to higher recession-related losses and lower premium volume; however, it still contributed 32.2 percent to AHL's operating results. AHL continues to diversify its product offerings successfully and increase the profitability contribution of its non-affiliated businesses. Net gain from operations at year-end 1992 totaled $39.7 million, representing a 19.9 percent average statutory return on capital and surplus.
 -0- 5/13/93
 /CONTACT: Lygia X. Campbell of Fitch, 212-908-0695/


CO: Alexander Hamilton Life Insurance Co. of America's ST: New York IN: INS SU: RTG

TM -- NY101 -- 8389 05/13/93 19:10 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 13, 1993
Words:417
Previous Article:KEENE SUIT SEEKS TO PUT ASBESTOS LITIGATION BEHIND IT; LIMITED FUND CLASS ACTION FILED IN NEW YORK
Next Article:GENERAL MOTORS, GMAC 'A-' SENIOR DEBT AFFIRMED BY FITCH AFTER PENSION DISCLOSURE -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
RESIDENTIAL FUNDING MORTGAGE SECURITY SERIES 1991-S18 AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
HOUSEHOLD FINANCE $17 BILLION DEBT AFFIRMED BY FITCH AFTER CHARGE -- FITCH FINANCIAL WIRE --
ALEXANDER HAMILTON LIFE 'AA' CLAIMS PAYING AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
PMI-INSURED 'AAA' MORTGAGE ISSUES PLACED ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE --
PMI-INSURED "SUPER-SENIOR" MORTGAGE DEBT AFFIRMED, OFF FITCHALERT -- FITCH FINANCIAL WIRE --
SEARS MORTGAGE SECURITIES CORP 1992-11 CLASS A-3 'AAA' RATING AFFIRMED -- FITCH FINANCIAL WIRE --
ALEXANDER HAMILTON 'AA' CLAIMS-PAYING RATING WITHDRAWN BY FITCH -- FITCH FINANCIAL WIRE --
Equitable Removed From FitchAlert; 'AA' Rating Affirmed - Fitch Financial Wire -
Fitch IBCA: Market Turmoil Impact on Global Financial Institutions - Fitch IBCA -.
Insurer Financial Strength Ratings Affirmed for Cincinnati Financial Corporation Subsidiaries; - A.M. Best affirms top rating of A++ (Superior) for...

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters