A.M. Best Revises Outlook to Negative for Equitable Life & Casualty Insurance Company
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OLDWICK, N.J.--(Business Wire)-- A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of "bbb" of Equitable Life & CasualtyInsuranceCompany (Equitable Life & Casualty) (Salt Lake City, UT). The revised outlook reflects Equitable Life & Casualty`s recent net losses reported and an associated decline in risk-adjusted capital within the past year due primarily to strengthening of long-term care reserves, higher expenses related to marketing new products and realized capital losses incurred on investments. A.M. Best anticipates that the company will continue to report operating losses for at least the near term. Equitable Life & Casualty is currently exploring a number of options to bolster its risk-adjusted capital position via securing outside capital and/or reinsurance arrangements. Should these efforts not be successful by year end to support the risk-adjusted capital ratio necessary for its current ratings, or if operating losses were to increase in magnitude in the coming quarters, a downgrading of the ratings would be likely. Equitable Life & Casualty, traditionally a marketer of primarily long-term care, Medicare supplement and senior life insurance coverages, maintains a market presence in the western United States. For Best`s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. A.M. Best Co. Analysts Brian Virostek, 908-439-2200, ext. 5531 brian.virostek@ambest.com or Jeffrey Lane, 908-439-2200, ext. 5567 jeffrey.lane@ambest.com or Public Relations Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow, 908-439-2200, ext. 5378 rachelle.morrow@ambest.com Copyright Business Wire 2009
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