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 American Republic Insurance Company
(American Republic)(Des Moines, IA) and World Insurance Company (World) (Omaha,
NE), subsidiaries of American Enterprise Mutual Holding Company (American
Enterprise)(Des Moines, IA).
In addition, A.M. Best has assigned an FSR of A- (Excellent) and an ICR of “a-”
to American Republic CorpInsurance Company (American Republic Corp) (Omaha, NE),
a subsidiary of American Republic. Concurrently, A.M. Best has upgraded the FSR
to A- (Excellent) from B++ (Good) and ICR to “a-”from “bbb” of World Corp
Insurance Company (World Corp)(Omaha, NE), a subsidiary of World. The outlook
for all ratings is stable.
The ratings assigned to American Republic Corp and the upgrading of the ratings
for World Corp reflect the explicit support each company receives from American
Republic. This is evidenced by the recent implementation of material quota share
reinsurance and capital support agreements with the two companies and American
Republic. World Corp, reactivated in 2006, markets new Medicare supplement
products under the World brand, in addition to administering its original
run-off individual major medical business. American Republic Corp, reactivated
in 2007, has been noticeably growing premium revenue in recent years by selling
new Medicare supplement products in its role as American Republic`s marketing
American Enterprise, a mutual holding company with annual net premiums written
totaling over $600 million, markets primarily individual major medical and
Medicare supplement products to niche markets chiefly in the Midwest.
Although American Enterprise maintains a favorable risk-adjusted capital
position and significantly reduced expenses in 2009, the organization has been
experiencing increased competition in its core accident and health lines of
business in recent years, which may compress future premium revenue and
earnings. In addition, the regulations and requirements of recently enacted
national health care reform legislation will likely pressure future operating
results in American Enterprise`s individual major medical segment.
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
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.
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