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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 06, 2006 12:00 AM (EST)
A.M. Best Co. has downgraded the financial strength rating (FSR) to E (Under Regulatory Supervision) from C- (Weak) of Booker T Washington Insurance Company, Inc. (BTWIC) (Birmingham, AL). This rating action follows the announcement by the Alabama Department of Insurance that BTWIC had voluntarily submitted to being placed into receivership.
BTWIC recorded a significant decline in surplus in its first quarter 2005 statutory statement, following several years of capital erosion. A recent routine examination by the Alabama Department of Insurance indicated that BTWIC was insolvent by $4.3 million.
Concurrent with this action, A.M. Best has downgraded the FSR to D (Poor) from C- (Weak) of BTWIC's life subsidiary, Universal Life Insurance Company (Universal Life) (Birmingham, AL). The rating outlook is negative.
While A.M. Best notes that Universal Life has not been placed into receivership at this time, the rating action reflects the view that the entire insurance organization is stressed by this regulatory action and considers the historically weak operating performance of Universal Life.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit Best's Life/Health Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.