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A.M. Best Places Ratings of MONY Life Insurance Company Under Review With Negative Implications

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A.M. Best Places Ratings of MONY Life Insurance Company Under Review With Negative Implications

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has placed under review with negative implications the financial strength rating (FSR) of A+ (Superior) and issuer credit rating (ICR) of “aa-” of MONY Life Insurance Company (MONY)(New York, NY).

Concurrently, A.M. Best has downgraded the FSR to A (Excellent) from A+ (Superior) and the ICR to “a+” from “aa-” of MONY Life Insurance Companyof America (MLOA)(Phoenix, AZ). The outlook for the FSR is stable, while the outlook for the ICR is negative.

The rating actions follow the announcement that Protective Life Corporation (Protective) [NYSE: PL] (Birmingham, AL) will purchase MONY from AXA S.A. (AXA) (France) [OTC: AXAHY.PK], the ultimate parent of AXA Financial, Inc. (AXA Financial). MONY consists primarily of a closed book of life insurance business; the company no longer markets new policies.

While the MLOA entity is not part of the transaction, significant portions of its business will be coinsured to Protective’s life insurance subsidiaries. Although MLOA will continue to sell AXA Financial’s variable life and indexed universal life products, A.M. Best does not expect MLOA to be a material contributor to AXA’s U.S. operations.

Protective’s business model calls for organic growth complemented by select acquisitions, and this transaction is consistent with that strategy. Protective has a long history of successfully acquiring and integrating blocks of businesses, especially seasoned life insurance policies. A.M. Best expects the under review status to be resolved shortly after the closing of the transaction and discussions with management regarding plans for the acquired entity.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Co.
Anthony McSwieney, 908-439-2200 ext. 5715
Senior Financial Analyst
anthony.mcswieney@ambest.com
William Pargeans, 908-439-2200 ext. 5359
Assistant Vice President
william.pargeans@ambest.com
Rachelle Morrow, 908-439-2200 ext. 5378
Senior Manager, Public

From: http://www.dailyfinance.com/2013/04/11/am-best-places-ratings-of-mony-life-insurance-comp/

Business, Finance, Occupation & Industry

A.M. Best Affirms Ratings of Endurance Specialty Holdings, Ltd. and Its Subsidiaries

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A.M. Best Affirms Ratings of Endurance Specialty Holdings, Ltd. and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Endurance Specialty Insurance Ltd. (Endurance) and its affiliates. Concurrently, A.M. Best has affirmed the ICR of “bbb” and debt ratings of the publicly traded parent, Endurance Specialty Holdings, Ltd. [NYSE: ENH]. Both companies are domiciled in Bermuda. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)

The ratings reflect Endurance’s strong level of risk-adjusted capitalization, specialty focused, diversified business profile and the company’s relatively solid operating performance given the natural catastrophes in the past few years. Approximately 30% of Endurance’s net premiums written are related to agriculture insurance, which gives it a somewhat unique profile when compared to many of its peers. Historically the agriculture business has been profitable for Endurance since it was acquired in 2007. However, in 2012 there was a severe drought in the United States, which resulted in a loss for this line of business. While the agricultural losses were in line with Endurance’s risk profile and it still reported an overall net profit, the losses dampened operating results in 2012 and came on the back of a net income loss in 2011 as a result of global catastrophes.

Endurance has built a solid enterprise risk management framework that has evolved with the company and allows the organization to absorb the aforementioned losses. Nonetheless, operating performance can help drive balance sheet strength or erode it, and Endurance will continually be monitored in that aspect as part of A.M. Best’s overall analysis. Endurance continues to execute its strategy, and in recent months, there have been some management changes that are expected to augment the company’s capabilities. However, there continues to be broad market challenges going forward as casualty rates remain soft, investment yields are low and global economic uncertainty remains part of the landscape.

These challenges and other rating factors, which could lead to Endurance’s ratings being downgraded or a revision of the outlook to negative, include unfavorable operating profitability trends, outsized catastrophe or investment losses relative to expectations and peers, adverse loss reserve development and/or a material decline in risk-adjusted capital. Alternatively, factors that could lead to a ratings upgrade include sustained favorable operating profitability, coupled with maintenance of strong risk-adjusted capital levels and robust enterprise risk management.

The FSR of A (Excellent) and ICRs of “a” have been affirmed for Endurance Specialty Insurance Ltd and its following …read more

Source: FULL ARTICLE at DailyFinance

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A.M. Best Downgrades Issuer Credit and Debt Ratings of The Phoenix Companies, Inc.; Ratings for Its

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A.M. Best Downgrades Issuer Credit and Debt Ratings of The Phoenix Companies, Inc.; Ratings for Its Subsidiaries Remain Under Review

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has downgraded the issuer credit rating (ICR) to “b+” from “bb-” and debt rating to “b+” from “bb-” on the outstanding $253 million 7.45% senior unsecured notes of The Phoenix Companies, Inc. (Phoenix) (Hartford, CT) (NYS: PNX) . The ratings for Phoenix’s life insurance subsidiaries are unchanged. All ratings remain under review with negative implications.

The downgrades reflect A.M. Best’s current view of Phoenix’s overall financial flexibility given the continuing delays in the filing of its GAAP financials for the third quarter of 2012 and year-end 2012. A.M. Best remains concerned regarding potential multiple material weaknesses in the company’s internal controls over financial reporting and disclosure controls and procedures to be reported in its 2012 Form 10-K. At this juncture, A.M. Best believes that widening the gap between the lead operating company’s (Phoenix Life Insurance Company) ICR of “bbb-” and the holding company’s ICR to four notches is warranted. Per A.M. Best’s rating criteria for insurance holding companies, standard notching for a “bbb-” operating company is either three or four ICR levels.

As previously announced, A.M. Best has received and reviewed the group’s unaudited statutory statements as of December 31, 2012. A.M. Best notes that Phoenix publicly stated it would provide an update on the restatement or before April 30, 2013. (See A.M. Best’s press release dated March 19, 2013.)

Given that March 31, 2013 has passed, Phoenix is once again in a cure period for delivering third quarter financials to the trustee of its outstanding 7.45% bonds. Therefore, if management believes it will not file within the cure period, it is again faced with soliciting a waiver from a majority of the debt holders or facing a potential acceleration of the debt. While A.M. Best believes the latter is a lower probability, and management has outlined potential sources of liquidity to deal with that scenario, Phoenix is overall in a less flexible position. Although Phoenix has indicated it has approximately $145 million in cash and equivalents in the holding company, currently, it has no demonstrated access to either the debt or equity capital markets and does not have a bank facility in place on which to draw.

It remains uncertain as to the magnitude of any potential adjustments to individual financial statements as well as the time required to complete the process. A.M. Best will continue …read more

Source: FULL ARTICLE at DailyFinance

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A.M. Best Affirms Ratings of Aegon N.V. U.S. and Canadian Subsidiaries

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A.M. Best Affirms Ratings of Aegon N.V. U.S. and Canadian Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of the U.S. life/health subsidiaries of Aegon N.V. (Aegon) (Netherlands) [NYSE: AEG]. Aegon’s U.S. life/health companies are collectively referred to as Aegon USA Group (Aegon USA). In addition, A.M. Best has affirmed the debt ratings of “aa-” on the outstanding notes issued under the funding agreement-backed securities (FABS) programs sponsored by Monumental Life Insurance Company (Cedar Rapids, IA), a member of Aegon USA. Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of Stonebridge Casualty InsuranceCompany (Stonebridge Casualty), the property/casualty member of Aegon USA.

A.M. Best also has affirmed the FSR of A- (Excellent) and ICR of “a-” of Transamerica Life Canada (TLC) (Toronto, Ontario) a wholly owned subsidiary of Aegon and the FSR of A (Excellent) and ICR of “a” of Canadian Premier Life Insurance Company (CPL), a subsidiary of TLC. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)

The rating affirmations of Aegon USA reflect its favorable earnings performance and risk-adjusted capitalization during 2012. International Financial Reporting Standards (IFRS) earnings for Aegon Americas (which includes its U.S., Canadian and Latin American operations) were $1.3 billion for year-end 2012.

Aegon USA recorded U.S. statutory net income of $1.8 billion for year-end 2012. The group’s risk-adjusted capitalization remained strong as its year-end 2012 regulatory capital ratio improved slightly over the previous year and is significantly higher than historical levels.

Aegon USA’s stand-alone credit profile considers its strong market position in a number of U.S. life and annuity market segments, a large multi-channel distribution platform, its diversified sources of earnings and a strong positive cash flow. The organization also benefits from meaningful economies of scale, strong brand name recognition and effective asset/liability and liquidity management. Aegon USA’s ratings also recognize A.M. Best’s assessment of the financial strength and support of Aegon. As a result, the stand-alone ratings of Aegon USA receive rating enhancement in consideration of Aegon’s overall creditworthiness and the strategic and financial importance of the U.S. operations to Aegon.

A.M. Best notes that Aegon USA has taken various initiatives to de-risk its balance sheet and improve its risk profile. The quality of its investment portfolio has been upgraded by reducing hedge fund holdings and increasing positions in treasuries and other short-term investments. The institutional spread-based business (primarily guaranteed interest contracts, funding agreements …read more

Source: FULL ARTICLE at DailyFinance

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A.M. Best Affirms Ratings of Baldwin & Lyons, Inc. and Its Subsidiaries

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A.M. Best Affirms Ratings of Baldwin & Lyons, Inc. and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of Protective Insurance Company (PIC) and its wholly owned subsidiary, Sagamore Insurance Company (Sagamore). In addition, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of PIC‘s other wholly owned, separately rated subsidiary, Protective Specialty Insurance Company (PSIC). Collectively, these three companies are referred to as Baldwin & Lyons Group (the group).

Concurrently, A.M. Best has affirmed the ICR of “a-” of the group’s ultimate publicly traded parent, Baldwin & Lyons, Inc. [NASDAQ: BWINA and BWINB]. The outlook for all ratings is stable. All companies are domiciled in Indianapolis, IN.

The ratings of PIC and Sagamore reflect the group’s superior risk-adjusted capitalization, historically excellent operating performance and solid market position in its core commercial trucking market. These positive rating factors are derived from the group’s modest underwriting leverage, disciplined underwriting practices and solid market presence within the national and regional commercial trucking market. Long-standing relationships are maintained with a core group of large trucking firms, including the group’s largest customer, resulting from its commitment to service and product development initiatives, which somewhat offsets concerns regarding customer concentration. In addition, the group increasingly operates as a diversified carrier through its expansion of products and markets, including non-standard personal automobile coverage, small fleet trucking programs, assumed property reinsurance, and more recently, professional lines errors and omissions (PL E&O) insurance, and workers’ compensation insurance, the latter largely marketed, along with other coverages, to commercial trucking independent contractors. Historically, the group’s emphasis on disciplined underwriting and loss control has led to solid underwriting profitability and substantial loss reserve redundancies on prior accident years.

These positive rating attributes are partially offset by the long-term competitive nature of the group’s core commercial trucking and non-standard personal automobile markets; elevated exposure to investment variability due to above-average common stock and limited partnership investments; variability in earnings due to catastrophe losses; below-average net yield on investments; the shareholder dividend requirements of Baldwin & Lyons, Inc.; and the degree of concentration with its largest customer. While growth in the group’s Florida business owners policies (BOP) and assumed property reinsurance business in recent years diversified revenues, the growth added a new potential source of variability in results through exposure to natural catastrophes, as evidenced in the group’s assumed property reinsurance business in 2010 and 2011. In 2012, the group terminated two assumed property reinsurance programs and began terminating all of its Florida BOP …read more

Source: FULL ARTICLE at DailyFinance

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CapLease Prices and Upsizes Common Stock Offering

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CapLease Prices and Upsizes Common Stock Offering

NEW YORK–(BUSINESS WIRE)– CapLease, Inc. (NYS: LSE) announced today that it has priced its previously announced common stock offering. The offering was priced at $5.97 per share and consisted of 7,500,000 shares of common stock. The offering was increased by 1,000,000 shares from the originally announced offering of 6,500,000 shares. CapLease has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock to cover over-allotments, if any. CapLease expects the offering to close on April 9, 2013, subject to customary closing conditions.

CapLease intends to use the net proceeds of the offering for general corporate purposes, which is expected to primarily include funding real property acquisitions in its pipeline.

Wells Fargo Securities is the sole book-running manager of the offering. JMP Securities and Stifel are the co-managers for the offering. A copy of the prospectus supplement and prospectus relating to the offering may be obtained from Wells Fargo Securities, Attention: Equity Syndicate Department, 375 Park Avenue, New York, NY 10152 (email: cmclientsupport@wellsfargo.com or telephone (800) 326-5897).

The shares of common stock will be issued pursuant to a registration statement that has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

This press release contains statements that are forward-looking. Such forward-looking statements involve risks and uncertainties and actual outcomes may differ materially from those projected. For more information regarding these risks and uncertainties, review CapLease’s filings with the Securities and Exchange Commission.

About the Company:

CapLease, Inc. is a real estate investment trust, or REIT, that primarily owns and manages a diversified portfolio of single tenant commercial real estate properties subject to long-term leases to high credit quality tenants.

Investor Relations/Media:
ICR, Inc.
Brad Cohen, 212-217-6393
bcohen@icrinc.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:

The …read more

Source: FULL ARTICLE at DailyFinance

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lululemon Announces Organizational Change

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lululemon Announces Organizational Change

VANCOUVER, British Columbia–(BUSINESS WIRE)– lululemon athletica inc. (NAS: LULU) (TSX: LLL) today announced a leadership change in the product organization.

In conjunction with a reorganization of our product organization, Chief Product Officer Sheree Waterson will be leaving lululemon effective April 15, 2013. “We appreciate the many contributions that Sheree made during her time with lululemon, particularly in the area of design,” said lululemon’s CEO Christine Day.

Ms. Waterson served as Chief Product Officer. She joined lululemon in 2008 and has over 25 years of consumer and retail industry experience.

About lululemon athletica inc.

lululemon athletica (NASDAQ:LULU; TSX:LLL) is a yoga-inspired athletic apparel company that creates components for people to live long, healthy and fun lives. By producing products that help keep people active and stress free, lululemon believes that the world will be a better place. Setting the bar in technical fabrics and functional designs, lululemon works with yogis and athletes in local communities for continuous research and product feedback. For more information, visit www.lululemon.com.

ICR, Inc.
Investors:
Joseph Teklits / Jill Gaul, 203-682-8200
or
Media:
Alecia Pulman, 203-682-8224
lululemonPR@icrinc.com

KEYWORDS:   North America  Canada

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A.M. Best Downgrades Issuer Credit Rating of National Lloyds Insurance Company

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A.M. Best Downgrades Issuer Credit Rating of National Lloyds Insurance Company

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has downgraded the issuer credit rating (ICR) to “a” from “a+” and affirmed the financial strength rating (FSR) of A (Excellent) of National Lloyds Insurance Company (National Lloyds).

Additionally, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of National Lloyds‘ affiliate, American Summit Insurance Company (American Summit). The outlook for all ratings is stable. All companies are domiciled in Waco, TX, unless otherwise specified.

Concurrently, A.M. Best has withdrawn the ICR of “bbb+” of Hilltop Holdings Inc. (HTH) (headquartered in Dallas, TX) (NYS: HTH) . National Lloyds and American Summit are subsidiaries of their ultimate parent, HTH.

The downgrading of National Lloyds‘ ICR reflects its adverse operating results in recent years primarily due to unfavorable underwriting performance. The deterioration in National Lloyds‘ underwriting performance was driven by increased weather-related losses in recent years, especially wind and hail events that occurred in the spring of 2012 in Texas. In response, management has increased rates, tightened policy coverage and is non-renewing and de-emphasizing unprofitable products and geographical regions that are more catastrophe-prone.

These negative rating actions are partially offset by National Lloyds‘ adequate risk-adjusted capitalization, conservative investment strategy and local market expertise within its niche market of personal property insurance. In addition, National Lloyds benefits from the financial flexibility of its immediate parent holding company, NLASCO Inc., which was evidenced in 2012 by its explicit support in the form of a capital contribution to offset underwriting losses.

In future rating cycles, negative rating actions could occur if National Lloyds‘ underwriting performance continues to deteriorate and/or there is a reduction in its overall risk-adjusted capitalization.

The ratings of American Summit recognize its solid risk-adjusted capitalization, conservative investment strategy and generally favorable operating performance. Over the last five years, American Summit has reported positive net income earnings driven by net underwriting gains, favorable other income and consistent net investment gains.

These positive rating factors are partially offset by American Summit‘s limited product offerings as primarily a provider of insurance for the mobile home market. In addition, American Summit‘s overall performance is susceptible to the frequency and severity of localized storm activity as the majority of its business is produced in Arizona. This was largely evidenced in 2011, as American Summit reported a sizeable year-end underwriting loss driven by significant weather-related losses in Arizona. American Summit maintains a prudent …read more
Source: FULL ARTICLE at DailyFinance

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A.M. Best Upgrades Issuer Credit Ratings of Odyssey Re Holdings Corp.'s Subsidiaries

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A.M. Best Upgrades Issuer Credit Ratings of Odyssey Re Holdings Corp.’s Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has upgraded the issuer credit ratings (ICR) to “a+” from “a” and affirmed the financial strength rating (FSR) of A (Excellent) of the Odyssey Reinsurance Group (Odyssey Re) members. Concurrently, A.M. Best has affirmed the ICR of “bbb” and the debt ratings of Odyssey Re Holdings Corp. (Odyssey Re Holdings) (Wilmington, DE). The outlook for these ratings is stable.

Additionally, A.M. Best has assigned an FSR of A (Excellent) and an ICR of “a+” to Hudson Excess Insurance Company (Wilmington, DE), the newest member of Odyssey Re. The outlook assigned to both ratings is stable. (See below for a detailed list of the companies and ratings.)

The ICR upgrades reflect Odyssey Re‘s excellent risk-adjusted capitalization, strong financial performance and sound business position. Odyssey Re is a global underwriter of reinsurance and specialty primary insurance products and ranks among the top 15 global reinsurance groups in terms of premium volume. Odyssey Re‘s competitive position benefits from its worldwide market presence with regard to business mix and geographic reach. These positive attributes are further supported by Odyssey Re‘s diversified geographic client base, combined with its large line capacity, broad product capability and an opportunistic business strategy. Odyssey Re‘s investment management philosophy, which emphasizes a total return strategy, has augmented its earnings to the extent that on a total return basis it has outperformed its reinsurance peers over the past five-year period. The ratings also recognize Odyssey Re‘s strong liquidity and the benefits derived from access to its ultimate parent, Fairfax Financial Holdings Limited (Fairfax), and Fairfax’s access to public markets.

Somewhat offsetting these strengths are the challenging underwriting and investment environments and Odyssey Re‘s historical reliance on both realized and unrealized capital gains to bolster its overall financial performance. A.M. Best views this source of earnings as more variable and less predictable than earnings sourced from underwriting.

Odyssey Re maintains a manageable exposure to natural catastrophes as measured by its 1-in-250-year probable maximum loss estimates relative to statutory surplus. In A.M. Best’s opinion, Odyssey Re has developed an excellent and holistic enterprise risk management framework.

Positive rating actions could occur if Odyssey Re maintains consistently strong underwriting performance and long-term profitability. Negative rating actions could occur if Odyssey Re experiences outsized catastrophe or investment losses relative to its peer group, or if capital erosion due to operating performance exceeds A.M. Best’s expectations.

The ICRs have been upgraded to “a+” from “a” …read more
Source: FULL ARTICLE at DailyFinance

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A.M. Best Affirms Ratings of Fairfax Financial Holdings Limited and Its Subsidiaries

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A.M. Best Affirms Ratings of Fairfax Financial Holdings Limited and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the issuer credit rating (ICR) of “bbb” and the unsecured debt and preferred equity ratings of Fairfax Financial Holdings Limited (Fairfax) [TSX: FFH and FFH.U] (Toronto, Canada).

Concurrently, A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and ICRs of “a” of the members of the Northbridge Companies (Toronto, Ontario), which represent Fairfax’s Canadian operations.

A.M. Best also has upgraded the FSR to A (Excellent) from A- (Excellent) and ICR to “a” from “a-” of Northbridge Personal Insurance Corporation (Toronto, Ontario) due to its status as a member of the Northbridge Companies, which provides it with operating efficiencies, underwriting expertise and other implicit benefits such as marketing and common management.

In addition, A.M. Best has affirmed the FSR of A- (Excellent) and ICRs of “a-” of Commonwealth Insurance Company of America (CICA) (Seattle, WA), CRC Reinsurance Limited (CRC) and Wentworth Insurance Company Limited (Wentworth) (both domiciled in Barbados). CICA was a wholly owned subsidiary of Northbridge Indemnity Insurance Corporation before its January 2013 sale to an affiliate and its placement into run off. Concurrently, A.M. Best has withdrawn the ratings of CICA and CRC as Fairfax has requested that both companies no longer participate in A.M. Best’s interactive rating process.

Additionally, A.M. Best has affirmed the FSRs of A (Excellent) and ICRs of “a” of the members of the Crum & Forster Insurance Group (C&F) (Morristown, NJ) and the Zenith National Insurance Group (Zenith Group) (Woodland Hills, CA), as well as the FSR of A (Excellent) and ICRs of “a+” of the members of the Seneca Insurance Group (New York, NY).

At the same time, A.M. Best has affirmed the ICRs of “bbb” and the unsecured debt ratings of Zenith National Insurance Corp. (Woodland Hills, CA), an indirect wholly owned downstream holding company of Fairfax. The outlook for all ratings is stable. (See link below for a detailed listing of the companies and ratings.)

The ratings of Fairfax reflect its historically favorable, albeit variable, levels of pre-tax operating and net income and its financial leverage and cash coverage levels, which are within A.M. Best’s requirements for its rating level. At December 31, 2012, Fairfax’s adjusted debt-to-total-capital level was 27.2% (excluding accumulated other comprehensive income), which includes the debt of its subsidiaries that are capable of supporting their own debt. In addition, Fairfax maintained holding company cash and investments of approximately $1.2 billion at year-end …read more
Source: FULL ARTICLE at DailyFinance

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A.M. Best Affirms Ratings of AMERISAFE, Inc. and Its Operating Subsidiaries

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A.M. Best Affirms Ratings of AMERISAFE, Inc. and Its Operating Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of American Interstate Insurance Company, Silver Oak Casualty, Inc. and American Interstate Insurance Company of Texas (Austin, TX) (collectively referred to as Amerisafe), all property/casualty subsidiaries of AMERISAFE, Inc. [NASDAQ: AMSF]. Concurrently, A.M. Best has affirmed the ICR of “bbb” of AMERISAFE, Inc. The outlook for all ratings is stable. All companies are headquartered in DeRidder, LA, unless otherwise specified.

These rating actions reflect Amerisafe’s excellent capitalization, strong operating profitability (which has outperformed its peer composite over the long term) and its established market presence and experience operating in the workers’ compensation market for high hazard risks. Amerisafe’s sound operating performance has been driven by its solid underwriting results, which are derived from management’s adherence to prudent practices and pricing discipline, focused loss control and safety programs and active claims management, which have resulted in favorable calendar year reserve development trends over the current five-year period.

These positive rating factors are somewhat offset by Amerisafe’s product concentration and pockets of adverse loss reserve development on a calendar and accident year basis, which caused earnings volatility in earlier years. The stable outlook reflects A.M. Best’s expectation that operating results will remain strong, resulting in continued solid capitalization that is well supportive of Amerisafe’s ratings.

While the ratings for Amerisafe are stable, future positive rating actions may result from its continued strong underwriting and operating performance. However, negative rating actions could result if operating performance or risk-adjusted capitalization falls markedly short of A.M. Best’s expectations.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Catastrophe Analysis in A.M. Best Ratings”; “Rating Members of Insurance Groups”; “The Treatment of Terrorism Risk in the Rating Evaluation”; “Understanding BCAR for Property/Casualty Insurers”; and “Insurance Holding Company and Debt Ratings.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

…read more
Source: FULL ARTICLE at DailyFinance

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Titan Machinery Inc. to Report Fiscal Fourth Quarter and Full Year Ended January 31, 2013 Results on

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Titan Machinery Inc. to Report Fiscal Fourth Quarter and Full Year Ended January 31, 2013 Results on April 10, 2013

WEST FARGO, N.D.–(BUSINESS WIRE)– Titan Machinery Inc. (NAS: TITN) announced today it will release financial results for the fourth quarter and full year ended January 31, 2013, on Wednesday, April 10, 2013, followed by an investor conference call at 7:30 a.m. Central time (8:30 a.m. Eastern time).

Investors interested in participating in the live call can dial (888) 401-4668 from the U.S. International callers can dial (719) 325-2472. A telephone replay will be available approximately two hours after the call concludes and will be available through Wednesday, April 24, 2013, by dialing (877) 870-5176 from the U.S., or (858) 384-5517 from international locations, and entering confirmation code 1411336.

There also will be a simultaneous, live webcast available on the Investor Relations section of the Company’s web site at www.titanmachinery.com. The webcast will be archived for 30 days.

About Titan Machinery

Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, is a multi-unit business with mature locations and newly-acquired locations. The Company owns and operates a network of full service agricultural and construction equipment stores in the United States and Europe. The Titan Machinery network consists of 106 North American dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, Wyoming, Wisconsin, Colorado, Arizona, and New Mexico, including two outlet stores, and 13 European dealerships in Romania, Bulgaria, and Serbia. The Titan Machinery dealerships represent one or more of the CNH Brands (NYS: CNH) , a majority-owned subsidiary of Fiat Industrial (Milan: FI.MI), including CaseIH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com.

ICR, Inc.
John Mills
Senior Managing Director
310-954-1105
John.Mills@icrinc.com

KEYWORDS:   United States  North America  North Dakota

INDUSTRY KEYWORDS:

The article Titan Machinery Inc. to Report Fiscal Fourth Quarter and Full Year Ended January 31, 2013 Results on April 10, 2013 originally appeared on Fool.com.

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A.M. Best Revises Outlook to Negative From Stable for Columbia Mutual Insurance Company and Its Insu

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A.M. Best Revises Outlook to Negative From Stable for Columbia Mutual Insurance Company and Its Insurance Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of Columbia Mutual Insurance Company (Columbia) (headquartered in Columbia, MO) andits insurance subsidiaries. (See below for a detailed listing of the companies.)

The negative outlook is based on Columbia’s significant operating losses in recent years that led to a sizeable decline in its policyholders’ surplus, stemming from catastrophe weather related losses and competitive market pressures in its primary operating territory.

The affirmation of the ratings is based on Columbia’s solid risk-adjusted capitalization, conservative operating strategy and long-standing market presence. Columbia’s solid risk-adjusted capitalization is derived from its moderate underwriting leverage and adequate balance sheet liquidity, which are partially offset by its moderately adverse loss reserve development in recent years and above-average common stock leverage.

Columbia reported significant underwriting losses over the previous five-year period, driven by widespread storm losses in the Midwest that were partially mitigated by solid, albeit gradually declining, net investment income. While Columbia has expanded its marketing territory in recent years, management has undertaken numerous corrective initiatives to improve underwriting results. Specific actions include numerous commercial and personal lines rate adjustments, increased use of loss control, more accurate insurance-to-value efforts and utilization of improved underwriting tools. Additional initiatives include the run-off of the homeowners’ and dwelling fire lines of business, the cancellation of underperforming agencies, property deductible increases and improved product and geographic diversification. Columbia also has implemented an improved enterprise risk management framework, which places greater emphasis on its risk management culture, corporate governance structure and risk assessment programs.

Columbia’s business concentration in the Midwest exposes its earnings and surplus to catastrophe losses stemming from wind, hail and tornadoes, as well as the earthquakes on the New Madrid fault line. This was particularly evident in 2011 and 2012, when Columbia reported significant underwriting losses, driven by unprecedented wind, hail and tornado losses. These underwriting losses resulted in large operating losses, which led to a $57.6 million or 27% decline in policyholders’ surplus over the two-year period. However, management partially mitigates these exposures through quality reinsurance, prudent risk management strategies and geographic spread of risk. In addition, through a comprehensive reinsurance program and underwriting actions, the net probable maximum loss (PML) for a 100-year hurricane (Columbia’s largest exposure), as depicted in a PML analysis, has been reduced to …read more
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A.M. Best Upgrades Ratings of Zale Life Insurance Company; Affirms Ratings of Zale Indemnity Company

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A.M. Best Upgrades Ratings of Zale Life Insurance Company; Affirms Ratings of Zale Indemnity Company

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and issuer credit rating (ICR) to “bbb+” from “bbb-” of Zale Life Insurance Company (Zale Life) (Phoenix, AZ). Concurrently, A.M. Best has affirmed the FSR of B++ (Good) and ICR of “bbb+” of Zale Life‘s affiliate, Zale Indemnity Company (ZIC) (Irving, TX). The outlook for Zale Life has been revised to stable from positive, while the outlook for ZIC is stable.

The rating upgrades reflect Zale Life‘s role as the credit life and disability insurance provider for the Zale Insurance Companies, its strong distribution relationship within the Zales retail stores in the United States, Canada and Puerto Rico and the synergies gained through common management, marketing platforms and shared services with ZIC. The ratings also consider Zale Life‘s continued solid risk-adjusted capitalization and positive earnings stream. A.M. Best also notes that Zale Life‘s investment portfolio is very short term in nature and has high levels of liquidity.

ZIC‘s affirmations reflect its continued strong underwriting results, profitable earnings and more than adequate risk-based capitalization. In the past three years, ZIC has significantly increased its premium volume while maintaining its strong underwriting metrics. The increase in written and earned premium can be primarily attributed to ZIC‘s state licensing initiatives, increasing its certificates of authority, as well as increased sales at the parent company, Zale Corporation (Zale Corp) [NYSE: ZLC].

While recognizing the group’s solid capital position and good profitability, A.M. Best notes that growth within the enterprise depends upon the health and strength of the economy, specifically as it relates to jewelry sales at Zale Corp. A.M. Best notes that while discretionary sales recently have improved, a potential decrease in consumer activity can still adversely impact the associated opportunities to market the group’s core credit products. Additionally, the ratings consider the challenges the organization faces in balancing new premium growth while maintaining favorable earnings trends and capitalization.

While the ratings are currently stable, positive rating factors include sustained material improvement in operating results at the parent level in conjunction with continued surplus appreciation and strong risk-based capitalization for the insurance companies. Negative rating actions could be caused by adverse economic conditions, as the insurance businesses are driven by the health of the overall U.S. economy. Other negative factors would include deterioration in operating results, a material change in the business profile of the insurance companies, increased leverage at Zale Corp. or a decline in risk-adjusted …read more
Source: FULL ARTICLE at DailyFinance

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A.M. Best Maintains Under Review Status on Ratings of The Phoenix Companies, Inc. and Its Subsidiari

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A.M. Best Maintains Under Review Status on Ratings of The Phoenix Companies, Inc. and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. is maintaining the under review with negative implications status on the financial strength rating (FSR) of B+ (Good) and issuer credit ratings (ICR) of “bbb-” of the subsidiaries of The Phoenix Companies, Inc. (Phoenix) (Hartford, CT) (NYS: PNX) . A.M. Best also is maintaining the under review with negative implications status on the ICR of “bb-” of Phoenix.These rating actions follow the company’s recent announcement of an additional delay in the filing of its third quarter and full-year 2012 GAAP financial statements. (See below for a detailed listing of the companies.)

In November 2012, Phoenix made its initial announcement regarding the delayed filings as it would be restating previously issued GAAP financial statements for the years ended December 31, 2011, 2010 and 2009, the interim periods for 2011 and the first and second quarters of 2012.

To date, the impact of the correction of errors identified and quantified in the restatement of prior periods has not had a material impact on Phoenix’s GAAP equity as of its last filing date of June 30, 2012. Additionally, although not anticipated at this time, the newly announced delay and potential impact of additional adjustments to consolidated stockholders’ equity and consolidated cash and cash equivalents could be material and adverse. Moreover, in Phoenix’s press release dated March 15, 2013, management believes it has identified multiple material weaknesses in its internal controls over financial reporting and is continuing to assess its disclosure controls and procedures.

A.M. Best has received and reviewed the group’s unaudited statutory statements as of December 31, 2012. A.M. Best notes that Phoenix plans to provide an update on the restatement on or before April 30, 2013.

A.M. Best will continue to monitor developments regarding Phoenix’s restatement and filings, including holding discussions with management regarding any additional errors found and/or potential changes in the materiality of any adjustments or processes before concluding on the under review status.

The FSR of B+ (Good) and ICRs of “bbb-” remain under review with negative implications for the following subsidiaries of The Phoenix Companies, Inc.:

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A.M. Best Affirms Ratings of Hallmark Financial Services, Inc. and Its Subsidiaries

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A.M. Best Affirms Ratings of Hallmark Financial Services, Inc. and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of the members of Hallmark Insurance Group (Hallmark Group) (headquartered in Fort Worth, TX). Additionally, A.M. Best has affirmed the ICR of “bbb-” for the group’s holding company parent, Hallmark Financial Services, Inc. (Hallmark Financial) (Nevada) [NASDAQ: HALL]. The outlook for all ratings is stable. (See below for a detailed listing of the companies.)

The affirmation of the ratings reflects Hallmark Group‘s adequate risk-adjusted capitalization and improved underwriting performance in 2012. Hallmark Group‘s adequate risk-adjusted capitalization has been driven by its historical pattern of surplus growth through positive fee income, solid investment income and capital gains over the last five years. Furthermore, management continues to focus on improving operating performance through recently implemented underwriting corrective actions and controlled geographic diversification into markets that are viewed as less price competitive than in its primary state of Texas. Hallmark Financial‘s acquisition of various agency production sources also has resulted in a greater geographic and product spread of risk for Hallmark Group. The members of Hallmark Group benefit from the financial flexibility of Hallmark Financial.

These positive rating factors are partially offset by the deterioration in Hallmark Group‘s operating performance in recent years, particularly in 2011, driven by sizable underwriting losses due to unfavorable Florida non-standard personal automobile loss experience, as it grew faster than expected in Florida and was impacted by inadequate rates and adverse loss reserve development, primarily in personal injury protection coverage. In addition, Hallmark Group maintains an elevated common stock investment leverage ratio. However, this risk is partially mitigated by its overall investment portfolio, which is conservative as the majority of its invested assets are invested in well diversified long-term bonds.

Hallmark Group‘s negative underwriting performance significantly improved in 2012 when compared with 2011. This is due primarily to recently implemented corrective actions, which included but were not limited to, completely exiting from the Floridian non-standard auto business, de-emphasizing of its personal lines book segment and rate increases. In addition, management has been exiting certain underperforming states and closing unprofitable programs and products. A.M. Best anticipates the improvement in the organization’s operating performance may continue due to management’s ongoing initiatives subject to successful execution risk associated with geographic and product expansion initiatives.

In future rating cycles, negative rating actions could occur if Hallmark Group‘s overall results continue to deteriorate and/or there are operating losses and a loss of surplus, which may …read more
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A.M. Best Affirms Ratings of The Chubb Corporation and Its Subsidiaries

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A.M. Best Affirms Ratings of The Chubb Corporation and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)– A.M. Best Co. has affirmed the financial strength rating (FSR) of A++ (Superior) and issuer credit ratings (ICR) of “aa+” of the property/casualty subsidiaries of The Chubb Corporation (Chubb Corp) (NYS: CB) also known as the Chubb Group of Insurance Companies (Chubb Group). Concurrently, A.M. Best has affirmed the ICR of “aa-“, all long-term debt and indicative ratings and the AMB-1+ on the commercial paper of Chubb Corp. In addition, A.M. Best has affirmed the FSR of A++ (Superior) and ICR of “aa+” of Chubb Atlantic Indemnity Ltd. (Chubb Atlantic) (Pembroke, Bermuda). The outlook for all ratings is stable, except for the commercial paper, which does not have an outlook. All companies are headquartered in Warren, NJ, except where specified. (See below for a detailed list of the companies and ratings.)

The ratings reflect the Chubb Group‘s superior risk-adjusted capitalization, excellent underwriting and overall operating performance and the sustainable competitive advantages within its specialty and upscale personal insurance businesses, which is demonstrated by its consistent outperformance of industry peers. The ratings also recognize Chubb Group‘s comprehensive and proactive enterprise risk management, disciplined underwriting practices, strong franchise recognition and access to the capital markets through Chubb Corp. The group’s positive rating attributes are enhanced by its position as a leading insurer in the United States and its global presence in specialty markets.

The strength of Chubb Group‘s balance sheet is derived from its consistent generation of underwriting profits, despite the recent impact of catastrophes and competitive market conditions and a well-diversified book of business, which has led to excellent risk-adjusted capitalization. Chubb Group‘s results also benefit from an above average total return on invested assets and strong underwriting and operating cash flows.

These positive rating factors are partially offset by challenging market conditions and catastrophe and weather-related losses, which have impacted underwriting performance in each of the last three years. Catastrophe losses added approximately six, nine and 10 points to the group’s combined ratios for 2010, 2011 and 2012, respectively. Management remains focused on limiting exposures through actively monitoring these risks and maintaining a prudent reinsurance program. In addition, the group has historically recognized adverse development of the loss reserves associated with its asbestos and environmental liabilities, although overall development of loss reserves has been favorable in recent accident and calendar years. Given Chubb Group‘s leading market position, specialty niche underwriting focus, prudent balance sheet liquidity, strong cash flows and excellent risk-adjusted capitalization, A.M. Best considers it favorably positioned and sufficiently capitalized …read more
Source: FULL ARTICLE at DailyFinance