DUFF & PHELPS: AMERICAN INVESTORS LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING UPGRADED FROM 'A' TO 'A+'
CHICAGO, Nov. 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has upgraded the claims paying ability rating of American Investors Life Insurance Company (AIL) to `A+' (Single-A-Plus) from `A' (Single-A). This rating action reflects improvements in AIL's capitalization resulting from the successful completion of a common stock offering by the company's parent holding company. American Investors Life is a stock life insurance company that has headquarters in Topeka, Kan. The company is a wholly owned subsidiary of AmVestors Financial Corp. (AVFC), a publicly held holding company traded on NASDAQ. AIL specializes in writing single premium deferred annuities (SPDA) for individuals who are approaching retirement age through a distribution force of over 6,000 independent brokers. The company reported statutory admitted assets of $1.8 billion and adjusted surplus of $112.1 million at Sept. 30, 1993. AVFC reported assets of $2.1 billion and stockholders' equity of $65.4 million at Sept. 30, 1993. The company recently completed an offering of common shares that raised net proceeds of $24.8 million. The proceeds are being utilized to repay all of AVFC's outstanding bank debt which totaled $13.9 million at Sept. 30, 1993. The remaining proceeds of approximately $11 million will be contributed to AIL, providing the company with capital for future growth, and enabling AIL to recapture outstanding surplus relief reinsurance in an accelerated manner. -0- 11/29/93 /CONTACT: James B. Auden, CFA of Duff & Phelps Credit Rating Co., 312-368-3146/ (AVFC)
CO: American Investors Life Insurance Company ST: Kansas IN: INS SU: RTG
CK -- NY066 -- 8331 11/29/93 13:31 EST
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|Date:||Nov 29, 1993|
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