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BEST RATINGS

 BEST RATINGS
 General Accident Insurance Group, Philadelphia, 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 applies to the group's predominant operation with is led by the General Accident Insurance Pool with 10 inter-company pool members. and the Hawkeye-Security Pool with three inter-company pool members.
 The consolidated group, led by General Accident Insurance Company, continued to produce superior overall profitability with a five-year operating ratio of 92. Underwriting results, however, have moderately deteriorated in recent years as the combined ratio rose to 112 in 1991 due to continuing rate inadequacies in its dominant private passenger auto line and increased price competition within its commercial lines.
 Since year-end 1986, net operating earnings and substantial realized capital gains have generated over $1 billion in total earnings, 60 percent of which were paid as dividends to its parent, General Accident (U.K.) Despite the large dividends, the group operates with conservative leverage with $2 billion in net writings supported by $1.7 billion in surplus. Liquidity remains excellent and is enhanced by strong cash flows. Over 92 percent of the group's surplus is invested in high quality common stocks.
 The Hawkeye-Security Group, a multi-line insurance group operating under an inter-company pool led by Hawkeye-Security Insurance Company, was assigned a 1992 Best's Rating of "A" (Excellent). The group's excellent financial strength was affirmed, and its rating level of "A" was unchanged.
 The General Accident Insurance Group is one of the country's 25 largest property/casualty groups and has over $5 billion in assets.
 Great Northern Insured Annuity Corporation, Seattle, 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 rating assignment reflects the company's favorable earnings performance, excellent asset quality, good capitalization and financial support of its parent concern. During 1991, Great Northern reinsured a substantial portion of its new business with ITT Lyndon Life Insurance Company. Due to this reinsurance transaction, continued operating profits and unrealized capital gains in its subsidiary holdings, Great Northern experienced a significant increase in capital and surplus funds during 1991. The company primarily markets single premium deferred annuities (SPDAs) to customers of financial institutions with the institution's endorsement. Great Northern ranks among the 65 largest life/health insurers in the United States when measured by total assets.
 Due to its strategic marketing role as a New York domiciled subsidiary of Great Northern, First GNA Life Insurance Company of New York, Purchase, N.Y. 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 rating is based on the consolidated performance of the parent and the subsidiary.
 John Alden Life Insurance Company, St. Louis Park, Minn. 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 designation reflects the company's favorable statutory earnings performance, high quality investment portfolio, and adequate risk-adjusted capitalization. The superior rating also acknowledges John Alden Life's significant presence in the small group accident and health and individual annuity fields.
 John Alden Life has sought to limit its exposure to the cyclical small group accident and health market through risk-transfer reinsurance and an increasing emphasis on its fee based service activities. Earnings have been partially offset by dividends to the parent concern in recent years. However, A.M. Best anticipates that the pending initial public offering of John Alden Financial Corporation will result in lower dividend requirements for John Alden Life and provide for increased flexibility to maintain adequate capitalization.
 John Alden Life's liquidity position is excellent, and the company continues to focus its investments on high quality securities. Although John Alden Life maintains a concentration in mortgages, its conservative lending practices and small average-sized loans have limited the negative impact from the general weakening experienced in this area. Its holdings of investment-grade bonds, cash and short-term obligations comprised 59 percent of 1991 invested assets. John Alden Life ranks among the 85 largest life/health insurers in the United States when measured by admitted assets.
 A subsidiary of John Alden Life, John Alden Life Insurance Company of New York, Suffern, N.Y. was assigned a 1992 Best's Rating of "A" (Excellent). The company's excellent financial strength was affirmed, and its rating level was raised from "A-" to "A." John Alden Life of New York principally markets individual deferred annuities in the State of New York.
 Life Insurance Company of Virginia, Richmond, Va. 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 improved earnings performance, favorable balance sheet quality and strong level of capitalization. Life of Virginia, an interest sensitive marketing unit of AON Corporation, markets traditional life, universal life, SPDAs and fixed and indexed GICs. Due to the direct correlation with the performance of the economy and the internal management of growth, net premium volume has fluctuated in recent years. Prior to 1991, earnings from its group pension and ordinary life lines more than offset the losses reported in the individual annuity line. As a result of a moderation in new SPDA sales during the year coupled with enhanced interest rate spread management, considerable turnaround in annuity profits was reported during 1991. Capital and surplus funds have advanced 86 percent over the past two years due to favorable operating gains, reduced dividend payments and $61.6 million in contributions from the parent company.
 The company maintains a favorable asset profile as nearly 99 percent of bonds are classified as investment-grade. Planned Amortization Classes (PAC traunches), market value adjustments and surrender charges on its policies act as a hedge against the risk of disintermediation. Life Insurance Company of Virginia maintains a favorable liquidity position as operating cash flow, investment-grade bonds and short-term investments totaled $5.3 billion at year-end 1991. When measured by total assets, Life Insurance Company of Virginia ranks among the 50 largest life/health insurers in the United States.
 Metropolitan Life Insurance Company, New York, was assigned a 1992 Best's Rating of "A++" (Superior). The company's superior financial strength was affirmed, and its rating level was raised from "A+" to "A++."
 This rating assignment is based on the company's substantial distribution channels and the prominent position which is maintained in its principal lines of business, its excellent liquidity posture and strong capitalization. Metropolitan Life maintains extremely conservative financial management strategies. As a result of its emphasis on building reserves, statutory earnings and surplus have been understated. A.M. Best anticipates that the strength of its core lines of business and the diversity of its investment portfolio will provide adequate insulation for the company from the negative impacts of further weakening in the real estate and mortgage markets. At year end, Metropolitan Life maintained $51.7 billion in investment-grade bonds, cash and short-term obligations (55 percent of invested assets). The company ranks as the second largest life/health insurer in the United States when measured by admitted assets.
 Due to its strategic marketing role as a subsidiary of Metropolitan Life, Metropolitan Tower Life Insurance Company, Newark, Del. was assigned a 1992 Best's Rating of "A++" (Superior). The company's superior financial strength was affirmed, and its rating level was raised from "A+" to "A++." This rating assignment is based on the consolidated performance of the parent and the subsidiary. Metropolitan Tower Life has served as a marketing arm of Metropolitan Life Insurance Company, through which a significant volume of variable universal life insurance policies have been sold.
 Metropolitan Insurance and Annuity Company, Newark, Del., a subsidiary of Metropolitan Life, 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. The activities of Metropolitan I & A had been principally concentrated on the sale of universal and single premium life and individual annuities. The majority of this business is currently either underwritten or reinsured by Metropolitan Life.
 Motorists Mutual Group, (property/casualty), Columbus, Ohio was assigned a 1992 Best's Rating of "A" (Excellent). The group's excellent financial strength was affirmed, and its rating level of "A" was unchanged.
 The group, led by Motorists Mutual Insurance Company, has been profitable in four of the past five years with a strong operating ratio of 91 generated over this period. The group's underwriting results improved significantly as the combined ratio declined six points to 103 in 1991, largely due to more favorable loss experience in its predominant personal auto line. On a five-year basis, surplus more than doubled from operating earnings producing conservative leverage measures with $290 million in net writings supported by $158 million in surplus. Liquidity is excellent and is enhanced by $50 million of cash flow in 1991.
 -0- 6/22/92
 /PART 3 OF 4/ CO: A.M. Best Company ST: New Jersey IN: INS SU: ECO


TS -- NY022C -- 2355 06/22/92 11:38 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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