Printer Friendly

FIRST COLONY LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY REAFFIRMED AT 'AA+': DUFF & PHELPS

 AMERICAN MAYFLOWER LIFE INSURANCE COMPANY OF NEW YORK
 CLAIMS PAYING ABILITY REAFFIRMED AT `AA+'
 CHICAGO, May 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. reaffirms the `AA+' (Double-A-Plus) claims paying ability ratings of First Colony Life Insurance Company (First Colony) and its wholly owned subsidiary American Mayflower Life Insurance Company of New York (American Mayflower). The rating reflects the company's (1) competitive position in its chosen markets: the settlement annuity market, and the sale of individual life and annuity products through the brokerage general agency distribution system, (2) high quality investment portfolio and the ability to invest funds at rates which allow competitively priced products while maintaining acceptable duration matching of assets and liabilities, (3) prudent operating leverage for its mix of business, (4) excellent liquidity because of the high level of reserves not subject to discretionary withdrawal, and (5) reasonable and improving statutory profitability despite the surplus strain of new business growth.
 Further, the rating is based on the expectations that (1) dividend payments to First Colony Corporation (FCC) to cover debt service and stockholders dividends, after Ethyl Corporation's (Ethyl) partial public offering and spin-off of its life insurance operations, will be in line with those paid to Ethyl under its ownership and (2) the refunding of bank debt taken down by FCC in connection with the offering will be refunded with a combination of perpetual preferred stock and long-term debt securities with maturities long enough that payoff of principal will not impede surplus development.
 First Colony, a stock life insurer based in Lynchburg Virginia, and American Mayflower make up the First Colony Corporation. Ethyl Corporation, a diversified specialty chemical company, acquired the common stock of FCC in 1982, contributed $45 million through 1986 and received $93 million in dividends from First Colony through 1992. In December 1992, Ethyl sold 20 percent of FCC in an initial public offering and July 1, 1993, Ethyl expects to spin off the remaining 80 percent of FCC in the form of a tax-free dividend to Ethyl shareholders. In connection with the public offering, FCC obtained a $250 million two-year bank loan, then paid a $250 million special dividend to Ethyl. It is expected that the bank loan will be refunded with a combination of long-term debt and preferred stock in the third quarter of 1993.
 -0- 5/25/93
 /CONTACT: Martha M. Butler, CFA of Duff & Phelps Credit Rating Co., 312-368-3191/
 (FCL)


CO: First Colony Life Insurance Company ST: Virginia IN: INS SU: RTG

SB -- NY061 -- 3531 05/25/93 12:34 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 25, 1993
Words:420
Previous Article:FIRST COLONY CORPORATION $255 MILLION ALL PURPOSE SHELF REGISTRATION RATED 'AA'
Next Article:ESCAMBIA COUNTY, FLA., $32.550 MILLION POLLUTION CONTROL REVENUE REFUNDING BONDS RATED 'A', SERIES 1993 BY DUFF & PHELPS
Topics:


Related Articles
NATIONAL HOME LIFE ASSURANCE COMPANY CLAIMS PAYING ABILITY RATING UPGRADED TO 'AA' FROM 'AA-' BY DUFF & PHELPS
CAPITAL HOLDING'S NATIONAL HOME LIFE RECEIVES UPGRADE FROM DUFF & PHELPS
DUFF & PHELPS: FORD LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AA'
DUFF & PHELPS: UNITED OF OMAHA LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AA'
D&P: AETNA PROPERTY/CASUALTY INTERCOMPANY POOLS CLAIMS PAYING ABILITY RATING LOWERED TO 'AA-' AND REMOVED FROM RATING WATCH--DOWN
DCR: FIRST COLONY LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AA+'
PROTECTIVE LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AA' BY DUFF & PHELPS
PROVIDIAN LIFE AND HEALTH INSURANCE RECEIVES SECOND UPGRADE FROM DUFF & PHELPS IN TWO YEARS; OTHER PROVIDIAN COMPANIES REAFFIRMED
DCR: OHIO NATIONAL LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AA'
DCR: HARTFORD LIFE COMPANIES RATING

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