CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 01, 2004 12:00 AM (EDT)
A.M. Best Co. has placed the ratings of American Amicable Group (Texas) and a number of other life insurers whose operations are focused primarily on the military insurance market under review with negative implications. (See list below.)
These rating actions reflect A.M. Best's concerns over the adverse publicity within the military base life insurance market surrounding improper sales practices by some agents with enlisted military personnel. A.M. Best believes these companies could be negatively impacted on sales production and operating results due to their significant reliance on the military life insurance business. Furthermore, A.M. Best believes that the allegations being investigated by regulatory authorities and other constituencies would result in additional financial uncertainties and challenges for these companies and could extend to the entire military life insurance segment.
The ratings of these companies will remain under review pending further discussions with management and an assessment of the impact concerning these companies' future sales and profitability. Additionally, A.M. Best will continue to monitor the military life insurance industry and the ongoing market conduct examinations and remedies by regulatory authorities and the U.S. Congress.
The financial strength rating of B++ (Very Good) has been placed under review with negative implications for the following companies of the American Amicable Group:
- Pioneer Security Life Insurance Company
- American-Amicable Life Insurance Company of Texas
- Pioneer American Insurance Company
The financial strength ratings of A- (Excellent) have been placed under review with negative implications for the following life insurance companies:
- 5 Star Life Insurance Company
- Trans World Assurance Company
The financial strength rating of B++ (Very Good) has been placed under review with negative implications for American Fidelity Life Insurance Company.
The financial strength rating of B+ (Very Good) has been placed under review with negative implications for TransAm Assurance Company.
The financial strength rating of B++ (Very Good) has been placed under review with negative implications for Occidental Life Insurance Company of North Carolina, a non-military life insurance affiliate of American Amicable Group.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.