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.
Helicopter Crash in Georgia Kills Groom, Pilot, Hours After Huge Wedding Celebration 
AIG’s Turnaround Under Zaffino Sets Stage for New Leadership 
Georgia Brokers and Agents Alarmed After Court Ruling Expands Liability for Them 
Amazon’s Ring Sued Over Facial Recognition Feature From This Issue
