OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best Co. has affirmed the financial strength rating of B+ (Good) and issuer credit ratings of “bbb-” of AmFirst Insurance Company (AmFirst) (Oklahoma City, OK) and Monitor Life Insurance Company of New York (Monitor) (Utica, NY). The outlook for AmFirst’s ratings is stable, and the outlook for Monitor’s ratings has been revised to stable from negative.

“Understanding BCAR for Life and Health Insurers”

AmFirst closed on its acquisition of Monitor on January 1, 2011. The revised outlook on Monitor Life reflects its expected reduced administrative cost burden as part of AmFirst, its projected premium and earnings growth, as well as capital support from its new parent. Subsequent to the acquisition, the company had an immediate capital infusion of approximately $600,000 in order to bring capital and surplus to acceptable levels for all state minimum requirements. AmFirst also received a contribution of capital from its owners of about $2 million at year-end 2010. Both of these infusions evidence management’s commitment to maintain appropriate capital based on business growth and regulatory requirements.

Monitor’s acquisition will immediately allow AmFirst to begin writing business in 13 states where it was not previously licensed. Monitor will commence its premium production by assuming supplemental medical premiums from AmFirst and its reinsurance partners, and will be filing with regulators to write AmFirst’s existing products. In addition, the group will begin quoting Monitor’s group term life insurance in conjunction with its supplemental medical and dental products.

The affirmation of AmFirst’s ratings recognizes the closing of its strategic initiative to acquire Monitor, which was initiated in June 2010. The acquisition also allows AmFirst to expand its demographic reach in which it markets its supplemental medical products and will add some diversification to its product mix. AmFirst did not incur any debt related to the purchase of Monitor and has exhibited consistent positive capital trends and operating performance in recent periods. A.M. Best will continue to monitor the strategic and financial impact of the acquisition on the group going forward.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Life and Health Insurers”; “Rating Members of Insurance Groups”; and “Assessing Country Risk.” Methodologies can be found at www.ambest.com/ratings/methodology.

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 Balboa Insurance Group (Balboa) and its property/casualty members, Balboa Insurance Company (BIC),Meritplan Insurance Company (both domiciled in Irvine, CA) and Newport Insurance Company (Phoenix, AZ).

Concurrently, A.M. Best has affirmed the FSRs of A- (Excellent) and ICRs of “a-” ofBalboa Life Insurance Company (Irvine, CA), Balboa Life Insurance Company of New York (New York, NY) (together known as Balboa Life) and General Fidelity Life Insurance Company (GFLIC) (Columbia, SC). The outlook for all ratings is stable.

All companies are owned by the BA Insurance Group, Inc., which is ultimately owned byBank of America Corporation (BAC) [NYSE: BAC].

The ratings and outlook of Balboa reflect its solid risk-adjusted capitalization, strong underwriting profitability and the organizational, operational and distribution support it derives from being owned by BAC. Partially offsetting these positive attributes are Balboa’s elevated underwriting leverage, significant aggregate exposure to catastrophe losses and the potential uncertain future within BAC.

Balboa continues to see substantial growth in its lender-placed business through large national independent financial institutions. However, from a business profile perspective, it highlights the group’s dependency upon BAC and other financial institutions for production of its business. A.M. Best also recognizes Balboa’s current “available-for-sale” status, as alluded to in the second quarter 2010 earnings call on July 16, which potentially redefines the group’s strategic importance within BAC. This move reflects BAC’s strategy to narrow the focus of the franchise, ensuring that every activity is core to the bank’s three customer groups—consumers, companies and institutional investors.

The ratings of Balboa Life recognize its continued strong levels of risk-adjusted capital, profitable operating results and an investment portfolio that provides a strong liquidity position. Balboa Life also benefits from the business opportunities afforded it through BAC. A.M. Best anticipates that the company will have more opportunities for business expansion through its marketing relationship with BAC.

Offsetting these strengths are Balboa Life’s continuing declining premium trends, challenges in penetrating its historic core business due to the downturn in the mortgage market and the modest results from its current strategic marketing initiatives. While A.M. Best acknowledges the business opportunities for Balboa Life through BAC, challenges do exist in executing a new business plan in the current business environment.

The ratings of GFLIC also are based on continued strong levels of risk-adjusted capital, profitable operating results and an investment portfolio that provides a strong liquidity position. In addition, GFLIC continues to grow net premiums written from assumed credit insurance business aligned to core BAC credit card services. Current assumed business is through a reinsurance arrangement with MBNA Canada and American Banker’s Life Assurance Company. This arrangement has offset the declining trends in credit insurance business for years prior to 2007. A.M. Best anticipates this business will be expanded to other international credit insurance business of BAC. GFLIC’s reliance on a single reinsurance source for nearly all of its business continues to be a concern.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; “Assessing Country Risk”; “A.M. Best’s Liquidity Model for U.S. Life Insurers”; and “Update to BCAR for Life & Health Insurers.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, 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 © 2010 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

LONDON–(BUSINESS WIRE)–A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Amlin AG(Switzerland) (formerly Amlin Bermuda Limited [ABL]). The outlook for both ratings is stable.

In October 2010, Amlin plc (Amlin), the holding company of the Amlin group, completed the establishment of a reinsurance platform in Zurich, Switzerland, to underwrite reinsurance business from European markets starting in 2011. A key part of this process was to re-domicile ABL (now Amlin AG) to Switzerland from Bermuda. Amlin’s Bermuda operation is now a branch of Amlin AG, which will accordingly operate through two divisions, Amlin Bermuda and Amlin Re Europe.

Amlin AG’s risk-adjusted capitalisation remains excellent despite significant dividend payments to its parent in 2009 and 2010. An increase in premium income is anticipated as Amlin Re Europe becomes established, but the company is expected to maintain an excellent level of risk-adjusted capitalisation.

Amlin Bermuda achieved an exceptional result in 2009, with low catastrophe losses and favourable prior-year reserve developments giving a profit of USD 391 million. The combined ratio was 57%, compared with 80% in 2008. Amlin Bermuda’s performance is enhanced by low management expenses and the quality of its account, a significant proportion of which comprises participation on business underwritten by Lloyd’s Syndicate 2001 (managed by Amlin Underwriting Limited). Syndicate 2001 has a history of strong profitability within Lloyd’s. It is anticipated that Amlin Re Europe will have little impact on performance in 2011 but over time will improve business diversification and earnings stability.

Amlin AG has an excellent business profile as part of the Amlin group. Amlin Bermuda writes predominantly a property reinsurance account comprising catastrophe, risk excess and proportional business. Approximately two-thirds of this business in 2009 was derived from the United States, with the remainder of the account having a good geographical spread. In addition to its internal group business, Amlin Bermuda writes a directly sourced account, which was 16% of group revenue in 2009. Effective 2011, Amlin Re Europe is expected to write a European property/casualty treaty book of business focused on small to mid-size businesses, contributing 10% of Amlin AG’s gross written premiums in 2011 and 20% in 2012.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Understanding Universal BCAR”; “Rating Members of Insurance Groups”; and “Rating New Company Formations”. Methodologies can be found at www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe – Rating Services Limited Supplementary Disclosure.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, 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 © 2010 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

OLDWICK, N.J., Sep 15, 2010 (BUSINESS WIRE) — A.M. Best Co. has assigned a financial strength rating of A (Excellent) and an issuer credit rating of “a” to CIGNA Health and Life Insurance Company (CHLIC) (Bloomfield, CT), a subsidiary of Connecticut General Life Insurance Company (CGLIC), which is an indirect wholly owned subsidiary of CIGNA Corporation (CIGNA) [NYSE: CI]. The outlook assigned to both ratings is negative.

The ratings of CHLIC are based on its strong capital position and the implicit support of CGLIC. Additionally, the favorable rating implications include a transition plan to move selected CGLIC’s mid-sized market segment clients into CHLIC, along with the business growth from actively marketing new business beginning in 2011.

Offsetting these favorable factors is the concentration risk of managing a narrow range of business, as CHLIC will focus primarily on the mid-sized market segment. CHLIC will need to file products and/or rates in each of the states in which it intends to compete, which may pose regulatory risks. Furthermore, there are risks associated in transitioning the existing business from CGLIC to CHLIC.

The negative outlook reflects the rating outlook of CHLIC’s intermediate parent, CGLIC.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology — Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Rating Health Insurance Companies”; “Understanding BCAR for Life/Health Insurers”; “Rating New Company Formations”; “Assessing Country Risk”; and “Risk Management and the Rating Process for Insurance Companies.” Methodologies can be found atwww.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best Co. has downgraded the financial strength rating to B++ (Good) from A- (Excellent) and issuer credit rating to “bbb+” from “a-” of National Farm Life Insurance Company (National Farm) (Fort Worth, TX). The outlook has been revised to stable from negative.

The rating actions reflect National Farm’s weakened risk-adjusted capitalization, the challenging business environment, which has led to a decline in new business, investment losses reported during the last two years and the potential for further investment impairments given the company’s continued unrealized investment loss position.

A.M. Best notes that National Farm’s risk-adjusted capital levels have declined relative to higher historical levels, and absolute total capital has been flat over the latest five-year period. At year-end 2009, National Farm’s level of below investment grade securities was elevated, representing over half of its total capital, while real estate exposure through direct mortgage loans was approximately three-quarters of surplus. In addition, National Farm recorded a number of impairments on selected fixed income securities, which resulted in realized capital losses over the last two years.

The ratings continue to reflect National Farm’s stable book of business and good market position in its niche rural markets. The continued expansion into worksite markets and the emerging Hispanic market have provided the company with additional opportunities to expand its business. However, A.M. Best notes that first-year life premiums have declined in each of the last two years. To rebuild total capital that declined as a result of realized investment losses over the past two years, the company reduced its participating policy dividend scale. This action has led to an increased net gain from operations.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found atwww.ambest.com/ratings/methodology.

Este reconocimiento reafirma los logros del Equipo Ejecutivo que ejerce desde hace cinco años

NUEVA ORLEANS, 20 de mayo /PRNewswire-HISPANIC PR WIRE/ — Pan-American Life Insurance Group (PALIG), anunció hoy que A.M. Best Co., una organización evaluadora global, incrementó la calificación de la solidez financiera a una A (Excelente) de su anterior A- (Excelente) y la calificación de crédito de los emisores pasó de “a-” a “a” para el miembro principal del Grupo Pan-American Life Insurance Company y sus afiliadas. El pronóstico de esta calificación revisada es estable.

En su informe, A.M. Best indicó que la calificación de Pan-American Life refleja la larga historia y el reconocimiento de la marca en los países latinoamericanos y en el mercado hispano de los Estados Unidos, la solidez del capital ajustado al riesgo, el impacto positivo de diversos programas para la contención de los gastos operacionales y la continua ejecución de nuevas iniciativas empresariales para dirigir el crecimiento de las primas mientras se mantiene la rentabilidad reglamentaria de las líneas de negocio principales. Según A.M. Best, la cartera de inversiones de Pan-American Life Insurance Company tiene menos riesgos relativos a los riesgos del seguro, mientras que la capitalización ajustada al riesgo ha permanecido a un nivel adecuado en los pasados años.

El informe además establece que el actual equipo ejecutivo, que ha ejercido por los pasados cinco años, continúa implementando y mejorando las estrategias empresariales al enfocarse en el crecimiento de los negocios principales en América Latina y Dólar Internacional; mientras sigue enfatizando sus operaciones en el mercado hispano de Estados Unidos.

“La calificación de A.M. Best reafirma de manera contundente que nuestro enfoque administrativo ha alcanzado los resultados anticipados a pesar de los retos que se presentaron este año a causa de las adversidades que generó la crisis económica global”, afirmó José S. Suquet, Presidente de la Junta Directiva, Presidente y CEO. “Desde hace cinco años, cuando me uní a Pan- American Life, hemos trabajado diligentemente para lograr esta meta. Todo nuestro equipo ejecutivo comparte el crédito de haber implementado una estructura sólida que ha posicionado estratégicamente a la compañía para seguir alcanzando nuevas alturas”.

Sobre Pan-American Life Insurance Group

Pan-American Life Insurance Group es un líder en la industria de seguros y servicios financieros que sirve a medio millón de clientes a través de las Américas. Con sede en Nueva Orleans, Pan-American Life Insurance Company, la principal compañía del Grupo, ha ofrecido servicios financieros confiables desde 1911 y cuenta con más de 700 empleados alrededor del mundo, ofreciendo seguros de vida y de salud de alta calidad, beneficios empresariales y servicios financieros reconocidos en 47 estados, el Distrito de Columbia (DC) y Puerto Rico. Su Grupo de compañías ofrecen seguros de vida y de salud individual y/o de grupo a través de toda América Latina. El Grupo tiene sucursales y afiliadas establecidas en Colombia, Ecuador, El Salvador, Guatemala, Honduras, Panamá y las Islas Caimán. Para obtener más información, visite la página Web de Pan-American Life en http://www.panamericanlife.com/.

Source: Pan-American Life Insurance Group

OLDWICK, N.J., May 03, 2010 (BUSINESS WIRE) — A.M. Best Co. has revised the outlook to positive from stable and affirmed the issuer credit ratings (ICR) of “a-” and senior debt ratings of ACE Limited (ACE) (Zurich, Switzerland) [NYSE:ACE] and ACE INA Holdings Inc.

Concurrently, A.M. Best has affirmed the financial strength ratings (FSR) of A+ (Superior) and ICRs of “aa-” of ACE Bermuda Insurance Ltd., ACE Tempest Reinsurance Ltd. (ACE Tempest Re) (both domiciled in Bermuda), ACE American Pool and its members, ACE INA Insurance (Canada) and ACE European Group Limited (United Kingdom) (collectively the core property/casualty operating companies). The outlook for the ICRs has been revised to positive from stable, while the outlook for the FSRs is stable.

A.M. Best also has affirmed the FSR of B- (Fair) and ICR of “bb-” of Century Indemnity Company, the run-off entity of ACE. The outlook for these ratings is stable.

Additionally, A.M. Best has affirmed the FSR of A+ (Superior) and ICR of “aa-” of ACE Tempest Life Reinsurance Ltd. (ATLRe) (Bermuda). At the same time, A.M. Best has affirmed the FSR of A (Excellent) and ICRs of “a” of Combined Insurance Company of America (Glenview, IL) and Combined Life Insurance Company of New York (Latham, NY) (Combined group of companies). The outlook for the ICRs has been revised to positive from stable, while the outlook for the FSRs is stable.

In addition, A.M. Best has downgraded the FSR to A- (Excellent) from A (Excellent) and ICR to “a-” from “a” of ACE Life Insurance Company (Stamford, CT). The outlook for these ratings is stable. All companies are domiciled in Philadelphia, PA, unless otherwise specified. (See link below for a complete listing of the companies and ratings.)

The ratings of ACE and its core property/casualty operating companies reflect an organization that is well diversified by business segment and geography and is strongly capitalized. The organization maintains the capacity to generate significant cash flow and earnings in its domestic and overseas markets given its underwriting acumen. In addition, ACE’s balance sheet remains stable through controlled financial leverage, a relatively conservative investment portfolio and favorable loss reserve developments in recent years.

The positive rating factors are derived from management’s successful operating strategies, which include consistent focus on underwriting profitability through careful risk selection and pricing, appropriate policy limits within the business model framework and the use of reinsurance to manage net retained exposures at appropriate levels. Overall risk and catastrophe specific exposures are well managed through a comprehensive enterprise risk management (ERM) program. The ERM program relies on the close collaboration of ACE’s leaders and staff departments to appropriately identify and control enterprise risk and accumulations, manage and regularly review risks and verify through comprehensive internal and external audits. ACE’s first quarter 2010 underwriting and operating results remained strong despite an increase in global catastrophe losses, which further demonstrates the enterprise’s underwriting discipline and risk management philosophy. However, a fair degree of earnings variability is inherent, reflecting ACE’s above-average risk appetite and global reach.

Despite its positive track record, ACE (along with the rest of the industry) must remain consistently diligent with regard to pricing and exposure levels in order to continue to generate positive underwriting margins. This is particularly applicable given ACE’s risk appetite and spread of operations. As such, execution risk across the ACE enterprise remains a key rating consideration. In addition, the company’s balance sheet is somewhat susceptible to volatility from the capital markets, as evidenced by the realized and unrealized investment losses recorded in 2008 and early 2009. Despite the decline, risk-adjusted capitalization remained well supportive of the ratings during this period. For full-year 2009, the realized and unrealized loss positions improved significantly from the prior year, resulting in risk-adjusted capital levels that were more in line with ACE’s historic levels.

The ratings for ACE and its core property/casualty operating companies also recognize their exposure to emerging asbestos and environmental claims and natural and man-made catastrophes as well as higher than industry average ceded reinsurance recoverable leverage. The recoverable leverage is partially due to several unique characteristics of ACE, including its significant run-off book and agricultural and captive/cash flow programs.

While the run-off operations at Century Indemnity Company have stabilized, ACE remains exposed long term to the potential need to shore up capital, given potential adverse loss reserve development or capital reductions through operating losses. In 2009, Century Indemnity Company required net loss reserve increases of approximately $80 million, which was included in ACE’s overall favorable loss reserve development of $579 million.

The ratings of Century Indemnity Company acknowledge its $25 million of capital (a minimum level required by the 1995 Restructuring Agreement approved by the Pennsylvania Department of Insurance), a $2.5 billion reinsurance contract with National Indemnity Company and an $800 million excess of loss contract provided by the ACE American Pool. At December 31, 2009, approximately $1.1 billion of coverage remained on a paid basis under the contract with National Indemnity Company. At December 31, 2009, approximately $493 million of GAAP basis losses ($191.3 million on a statutory basis) had been ceded to the excess of loss agreement.

The ratings of ATLRe reflect its favorable capitalization on both a nominal basis and risk-adjusted basis, primarily because of the substantial capital level at its property/casualty subsidiary, ACE Tempest Re. The ratings also consider the history of favorable operating performance, ATLRe’s strong risk management and modeling capabilities as well as its strategy to cease accepting new variable annuity business during unfavorable market conditions.

The downgrading of the ratings for ACE Life Insurance Company is based upon the run-off nature of the operations. Effective January 1, 2010, ACE shifted its strategy away from the U.S. life reinsurance market to focus on businesses that generated higher returns for the use of capital.

The rating affirmations and ICR outlook revision of the Combined group of companies recognizes the established position in its core individual supplemental accident and health market, as well as the favorable operating results reported and its continued initiatives to reduce its expense structure. The group has continued to report favorable operating results and sales activity despite current weakened economic conditions. Additionally, the Combined group of companies took steps under its new ownership to reduce its expense structure through numerous operational efficiency programs, which are being implemented both domestically and internationally.

ACE maintains substantial capital levels in its Bermuda operations (namely ACE Bermuda Insurance Ltd. and ACE Tempest Re), while capital levels in other operating subsidiaries are sufficient to meet A.M. Best’s rating requirements. Operating subsidiary capital levels are protected by internal reinsurance arrangements with ACE affiliates, primarily in Bermuda. A.M. Best has incorporated the capital management strategy, and as a result, provides rating enhancement to a number of ACE operating subsidiaries.

ACE’s debt-to-capital ratio at March 31, 2010 remains modest at 14.9% (including trust preferreds). However, the company continues to maintain a sizable 18.9% of equity in intangible assets. Adjusting for tangible capital, the debt-to-capital ratio is 17.8% (including trust preferreds), well within A.M. Best’s expectations at current rating levels. Interest coverage also remained strong through first quarter 2010 at 17.9 times. Since ACE maintains substantial capital levels in its Bermuda-based operations, little cash and liquid securities are held at the ultimate holding company level. Therefore, holding company cash flows necessary to meet shareholder dividend and debt service requirements are principally met through dividends from the operating companies. Given the significant holding company cash flow requirements, there is a dependence on subsidiaries in multiple jurisdictions to provide sufficient dividend cash flow.

For a complete listing of ACE Limited, ACE INA Holdings, Inc. and subsidiaries’ FSRs, ICRs and debt ratings, please visit http://www.ambest.com/press/050305acelimited.pdf

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found atwww.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

SOURCE: A.M. Best Co.

Formerly in possession of S&P’s highest rating for financial strength, MassMutual Financial Group was demoted August 26th, 2009 to AA+, S&P’s second-highest rating.  MassMutual is a major provider for life insurance and other financial products, one of several industry providers to have suffered ratings downgrade in recent months.  S&P attributed MassMutual’s demotion to 1) its high proportion of illiquid capital, 2) high leveraging of its capital, and 3) broad downturn across the economy, all of which undermines MassMutual’s flexibility.

S&P is but one of ten Nationally Recognized Statistical Rating Organizations, and MassMutual’s status remains unchanged in the other nine NRSRO’s’ ratings.  However, it already occupies a place in Moody’s second-tier, and Moody’s has furthermore slated the group to be reviewed for yet further downgrade.  Nevertheless, A. M. Best and Fitch both award MassMutual their highest rank.

MassMutual still ranks among the highest institutions of the industry, though top competitors New York Life and Northwestern Mutual retain S&P’s attractive AAA rank.