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A.M. Best Places Ratings of General Fidelity Life Insurance Company Under Review With Negative Implications

  //business-finance.news-articles.net/content/201 .. any-under-review-with-negative-implications.html
  Published in Business and Finance on Tuesday, August 23rd 2011 at 12:46 GMT by Market Wire
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OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has placed under review with negative implications the financial strength rating of A- (Excellent) and issuer credit rating of aa-a of General Fidelity Life Insurance Company (GFLIC) (Columbia, SC). The company is owned by the BA Insurance Group, Inc., which is ultimately owned by Bank of America Corporation (BAC) (NYSE: BAC).

"Risk Management and the Rating Process for Insurance Companies"

The under review status of the ratings follows the August 15, 2011 announcement that BAC reached an agreement to sell its Canadian Card Unit to The Toronto-Dominion Bank and exit U.K. and Irish card markets. A.M. Best is uncertain as to the strategic direction as well as the scope of GFLIC's operations going forward, as nearly all of its new premium income is derived from credit insurance linked to these Canadian operations. The strategy of GFLIC has been to assume credit business in Canada, as well as the United Kingdom and Ireland beginning in 2011.

GFLIC was not part of the announced transaction. The ratings will remain under review pending A.M. Besta™s further discussions with management.

The principal methodology used in determining these ratings is [ Besta™s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Besta™s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aRisk Management and the Rating Process for Insurance Companiesa; aUnderstanding BCAR for Life and Health Insurersa; aUnderstanding BCAR for Property/Casualty Insurersa; aAssessing Country Riska; and aRating Members of Insurance Groups.a Methodologies can be found at [ www.ambest.com/ratings/methodology ].

Founded in 1899, A.M. Best Company is the worlda™s oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.