The “A-” financial strength rating (FSR) on General Agents Group, Oklahoma City, was lowered to “B++” by A.M. Best Co. The downgrade comes after a fourth-quarter and year-end 2000 financial review of the group by A.M. Best, which included additional deterioration in operating performance; greater dependence on reinsurance and costly outside capital to enhance capitalization; and significant demand on operating subsidiaries to fund parent (GAINSCO Inc.) obligations among the major rating factors. A negative outlook was assigned, reflecting A.M. Best’s opinion that the group may experience near-term difficulties restoring earnings to appropriate levels. However, the rating action also takes into account the group’s adequate capitalization and management efforts towards achieving a strong balance sheet and improved operating results.
Subsidiaries affected by the downgrade are General Agents Ins. Co. of America; MGA Ins. Co. Inc.; GAINSCO County Mutual; and Midwest Casualty Ins. Co.
Topics Agencies
Was this article valuable?
Here are more articles you may enjoy.
Amish Mother and 6 Children Killed in Explosion and Fire at Pennsylvania Home 
AI for the Defense: Should Insurers or Law Firms Pay? 
Oil Trader CFOs Say Hormuz Closure Driving Wave of Disputes 
State High Court Weighs in on Woman Taken for Organ Donation But Was Still Alive From This Issue
