A total of 22 companies, including Transamerica Life Insurance Company of New York, American Pioneer Life Insurance Company, Midwest Security Life Insurance Company, Life of the South Insurance Company, and Sierra Health and Life Insurance Company, received upgrades by Weiss, the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.
Manufacturers Life Insurance Company (Toronto, Canada) was downgraded to C (Fair) from B- (Good) due to a rapid decline in earnings since September 30, 2001. Net income plunged $499.8 million, from a $46.7 million profit in the first nine months of 2001 to a $453.1 million loss for the same period in 2002.
The decline in profitability has significantly weakened the company's capital position, with capital and surplus falling 36 percent, from $1.3 billion at September 30, 2001 to $852.3 million at the end of the third quarter 2002. The company's risk-adjusted capital ratio also declined, falling to 0.57 compared to a ratio of 1.37 at September 30, 2001.
Allianz Life Insurance Company of North America (Minneapolis, Minn.) was downgraded to C (Fair) from B (Good) due to a substantial decline in earnings. Net income fell $274.1 million, from an $83.7 million profit in 2000 to a $190.4 million loss for the first nine months of 2002.
The decline in earnings considerably weakened the company's capital position, which dropped from $808.7 million at year-end 2000 to $727 million at the end of the third quarter 2002.
Kemper Investors Life Insurance Company (Schaumburg, Ill.) was downgraded to a C+ (Fair) from a B- (Good). The downgrade reflects a progressive decline in the company's net income, from a $30.2 million loss in the first three quarters of 2001 to a $163.2 million loss for the same period in 2002. Return on equity (ROE) fell to -91.7 percent compared to a -9.8 percent ROE at September 30, 2001.
Phoenix Life Insurance Company (Enfield, Conn.) was downgraded to a C (Fair) from a B- (Good) due to a significant decline in earnings. Net income plummeted from a $266.1 million profit in 2000 to a $105.5 million loss for the first nine months of 2002. The company's risk-adjusted capital ratio also decreased, falling to 0.87 compared to a ratio of 1.32 at year-end 2000. Capital and surplus decreased by $678.3 million, from $1.3 billion at December 31, 2000 to $644.5 million at the end of the third quarter 2002.
AIG Life Insurance Company (Wilmington, Del.) was lowered to C+ (Fair) from B- (Good) based on a steady decline in earnings since December 2000. Net income decreased from an $18.7 million loss in 2000 to a $37.3 million loss for the first nine months of 2002.
Contributing to the loss was a steep decline in premium income, from $1.4 billion in 2000 to $812 million in the first three quarters of 2002.
22 Companies Receive Weiss Safety Rating Upgrades
Transamerica Life Insurance Company of New York (Purchase, N.Y.) was upgraded to B- (Good) from C+ (Fair) based on steadily improved performance since September 30, 2001. Net income increased by $10.3 million, from a $9.2 million loss for the first nine months in 2001 to a $1.1 million profit for the same period in 2002.
The increase in profitability has enabled the company to enhance its capital position, with capital and surplus jumping $67.2 million to $95.2 million as of the third quarter 2002 compared