Amwest Downgraded
Following the release of third-quarter earnings and a formal review of the financial position through September 2000 of the Amwest Insurance Group, the company's FSR was downgraded from "B" to "C-" by A.M. Best. The rating action is applicable to Amwest Surety Insurance Company and its subsidiary Far West Insurance Company. The company was previously downgraded to "B," in the vulnerable category, last August.
Hartford Affirmed
All ratings for the Hartford Financial Services Group Inc. (HIG) were affirmed by Fitch. Those ratings include HIG's fixed-income ratings, and the insurer FSR of Hartford Fire Intercompany Pool and a group of primary life insurance subsidiaries. The rating outlook is stable.
Zurich Re's 'AA' Affirmed
The "AA" insurer FSR and counterparty credit rating of Zurich Ruckversicherung, also known as Zurich Re, were affirmed by S&P, reflecting the strategic importance of Zurich Re to the Zurich Financial Services Group as well as the strength of both its capital adequacy and business position. Partially offsetting those factors was the company's marginal operating performance in recent years and the commoditized nature of some of the markets in which it operates. The outlook is negative.
Best Affirms Munich Re Group
The "A++" FSR of Munich Reinsurance Co. was affirmed by A.M. Best. The rating action also applies to the company's core reinsurance subsidiaries, including American Re-Insurance Company and its affiliates. Munich American Reassurance Company's "A+" FSR is under review with positive implications. Additionally, the "aaa" senior debt rating of Munich Re was affirmed, and an initial "aa" senior debt rating to American Re Corporation and an "aa-" rating to the trust preferred securities issued by American Re Capital I were assigned.
Penn Treaty Downgraded
The counterparty credit and FSRs on Penn Treaty Network America Insurance Co. were downgraded from "A-" to "BBB+" by S&P. Concurrently, the corporate credit and subordinated debt ratings on Penn Treaty American Corp. were lowered from "BBB-" to "BB+" and from "BB+" to "BB-," respectively. The outlook is stable.
First Mutual Assigned 'R'
Following a judicial granting of authority to the Kentucky Department of Insurance to supervise the daily operations of the assessment mutual insurance company, First Mutual Insurance Company, an "R" FSR was assigned to First Mutual by S&P. Although assessment companies were banned in 1998, those already in business were allowed to continue operations. First Mutual is one of approximately 40 such companies operating in the state of Kentucky.
Acceleration National Gets 'R'
An "R" FSR was assigned to Acceleration National Insurance Co. (ANIC) by S&P. The Ohio-domiciled property/casualty company, licensed in 47 states and D.C., was recently placed into rehabilitation following a complaint filed by the Ohio Department of Insurance director. ANIC's unaudited financial filing of Sept. 30, 2000, reported a surplus which fell below the required minimum surplus.
