S&P Assigns Federated National Ins. Co. 'BBpi' Rtg
25 November 1999
S&P Assigns Federated National Ins. Co. 'BBpi' Rtg
NEW YORK--Standard & Poor's--Nov. 24, 1999-- Standard & Poor's assigned its double-'Bpi' financial strength rating to Federated National Insurance Co.Based in Fort Lauderdale, FL, the company is licensed only in Florida, and its major line of business is private passenger automobile insurance. It commenced operations in 1992. Although the company is a wholly owned subsidiary of 21st Century Holding Co., its rating is based on stand-alone characteristics.
Major Rating Factors:
-- The company's return on assets has displayed high volatility,
with return on assets ranging from negative 2.9% to positive
8.0% over the last five years.
| -- | The company has a history of volatility in premium income. |
| -- | The company is highly concentrated, both geographically and by line of business. |
| -- | Capitalization is extremely strong , as indicated by Standard & Poor's capital adequacy ratio of 183%. |
'Pi' ratings, denoted with a 'pi' subscript, are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a 'pi' subscript. 'Pi' ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a 'pi' subscript are not subject to potential CreditWatch listings.
Ratings with a 'pi' subscript generally are not modified with 'plus' or 'minus' designations. However, such designations may be assigned when the insurer's financial strength rating is constrained by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said. ---CreditWire
