Printer Friendly

INTER-STATE ASSURANCE COMPANY CLAIMSPAYING ABILITY RATING REAFFIRMED AT 'AA' BY DUFF & PHELPS

 CHICAGO, Dec. 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the claims paying ability rating of Inter-State Assurance Company (Inter-State) at 'AA' (Double-A). The rating is based on the full support and guarantee of the company's parent, Irish Life Assurance Company (Irish Life). Duff & Phelps rates the claims paying ability of Irish Life `AA' (Double-A). Other factors contributing to the rating are Inter-State's excellent asset quality and conservative operating leverage.
 Inter-State is a stock life insurance company based in Des Moines, Iowa with admitted assets of $519 million and adjusted surplus of $52 million at Sept. 30, 1993. The company was purchased by Irish Life from Central Life Assurance Company in 1988 as its entry in the U.S. market for $30 million and a capital infusion of an additional $30 million. Irish Life's total investment to date in Inter-State is $70 million. Inter-State serves as the vehicle for growth in the U.S. and as a long-term investment for the parent.
 Irish Life is Ireland's largest life assurance company and the market leader. The Dublin-based company had general fund (non unit- linked) assets of $2.1 billion, total assets of $6.9 billion, and adjusted net worth of $401 million at Dec. 31, 1992. (Irish Life's financial statements are based on European accounting standards and are not directly comparable to U.S. statutory or GAAP financial statements.) The 'AA' rating for Irish Life reflects the company's strong capitalization, market share leadership in its home market, and low risk profile of its book of business. Weighed against these positives is Irish Life's high equity exposure, relative low liquidity of its asset portfolio, and dependence on the Irish economy.
 Inter-State has excellent asset quality and liquidity. Bonds represented 96 percent of total invested assets at Sept. 30, 1993. Of these bonds, 64 percent were government and high grade corporate issues, 35 percent were mortgage-backed securities, and only 1 percent were below investment grade holdings. Most of the bond portfolio holdings (99 percent) were securities traded in the public market. The balance of invested assets was comprised of policy loans and cash, each at 2 percent. The company has no real estate exposure. Inter-State has conservative operating leverage given its mix of business. At Sept. 30, 1993, operating leverage was 8.97 times. We expect this ratio to increase as the company grows its liability base.
 -0- 12/1/93
 /CONTACT: Julie A. Burke, CPA of Duff & Phelps Credit Rating Co., 312-368-3158/


CO: Inter-State Assurance Company; Irish Life Assurance Company ST: Iowa IN: INS SU: RTG

SH -- NY079 -- 9316 12/01/93 13:09 EST
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:Dec 1, 1993
Words:434
Previous Article:TELEMATICS TO INSTALL AND MANAGE THE SUPPORTING INFRASTRUCTURE OF MERCURY COMMUNICATIONS' WIRELESS ONE-2-ONE UK NETWORK
Next Article:COLORADO STUDENT OBLIGATION BOND AUTHORITY 1993 I-A/I-B 'AAA'/'A' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:

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