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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 30, 2008 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit rating (ICR) of "bbb-" of Enterprise Life Insurance Company (Enterprise Life) (Irving, TX), a wholly owned subsidiary of the privately held Enterprise Financial Group, Inc. (Texas). The outlook for both ratings is stable.
Concurrently, A.M. Best has withdrawn the ratings and assigned a category NR-4 (Company Request) to Enterprise Life. This rating action reflects management's decision to withdraw from A.M. Best's interactive rating process.
The affirmation is based upon Enterprise Life's sound risk-adjusted capitalization and generally positive underwriting profits in its core credit lines. Offsetting rating factors include the challenges of increasing credit insurance premiums, its concentration of business in Texas and significant use of reinsurance.
Due to the current adequate levels of risk-adjusted capitalization, A.M. Best believes that Enterprise Life presently has a good ability to meet its ongoing obligations. The FSR and ICR of Enterprise Life do not reflect potential operating losses that may be incurred or any potential changes in the strategic focus or capital structure that management may make in the future.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
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.