S&P Asgns Federated Service Insurance 'Api' Rating

Business Wire, Sept 22, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 9/22/98--Standard & Poor's today assigned its single-'Api' insurer financial strength rating to Federated Service Insurance Co.

Federated Service is licensed in 18 states. The company's major lines of business are property insurance and reinsurance, and it is a member of Federated Mutual Group, a large insurance group, (surplus in excess of $100 million). The company commenced operations in 1975.

Below is a summary of the analysis that resulted in a rating of single-'Api'.

-- Under Standard & Poor's capital adequacy model capitalization is superior with a ratio of over 300%.

-- The company is a wholly owned reinsured subsidiary of Federated Mutual Insurance Co.

Federated Service Insurance Co. is assigned its parent rating of single-'Api'.

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. The ratings 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