DUFF & PHELPS: BANKERS LIFE HOLDING CORPORATION SENIOR SUBORDINATED DEBT RATING UPGRADED TO 'BB'
CHICAGO, July 26 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has upgraded the senior subordinated debt rating of Bankers Life Holding Corporation (BLHC) to `BB' (Double-B) from `B+' (Single-B-Plus). The rating action reflects the improved capital structure and interest coverage as a result of the company's recent initial public offering of common stock and improved premium production. BLHC is a holding company formed by Conseco Capital Partners, L.P. (Partnership) for the acquisition of Bankers Life and Casualty Company (Bankers Life). On Nov. 9, 1992, the Partnership purchased Bankers Life and one of its subsidiaries (Certified Life Insurance Company) from a subsidiary of I.C.H. Corporation (ICH) for $600 million. Bankers Life is a Chicago-based stock life insurance company with total admitted assets of $2.3 billion and adjusted surplus of $290 million at March 31, 1993. Bankers Life has excellent profitability and specializes in individual life and health insurance products. Proceeds of the offering totaled $405 million and were used to redeem all $161 million of outstanding payment-in-kind preferred stock, contribute $114 million to the insurance subsidiaries, retire all $45 million of outstanding payment-in-kind subordinated notes, and prepay $25 million and pay $30 million of the senior term loan. Remaining cash of $30 million will be used for general corporate purposes. Pro- forma fixed obligation ratio declined to 40 percent from 70 percent at year-end 1992. Pro-forma interest coverage ratio improved to 4.44 times from 3.71 times for the year ended Dec. 31, 1992. In the first quarter of 1993, earned premium increased 9 percent to $344 million from the prior year's first quarter. Most of the growth came in the company's core product, Medicare supplement health insurance. -0- 7/26/93 /CONTACT: Julie A. Burke, CPA, of Duff & Phelps Credit Rating Co., 312-368-3158/ (BLH)
CO: Bankers Life Holding Corporation ST: Illinois IN: INS SU: RTG
MG -- NY051 -- 5716 07/26/93 13:12 EDT
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|Date:||Jul 26, 1993|
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