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.
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