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A.M. Best Removes From Under Review and Affirms Ratings of BancInsure, Inc. CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., June 22, 2009—A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of ‘a-” of BancInsure, Inc. (BancInsure) (Oklahoma City, OK). Both ratings have been assigned a stable outlook. The ratings were placed under review with negative implications on March 20, 2009 following BancInsure’s disappointing net loss for 2008 and unrealized investment losses, which combined, produced a $16.1 million or 36% erosion in shareholders’ equity in 2008. BancInsure’s ratings reflect that its risk-based capital position has been replenished by a significant capital contribution; thus, recognizing the financial strength and support of its investors. Through April 30, 2009, BancInsure results demonstrate improvements in underwriting performance and in its investment portfolio while showing a reduction in the company’s allocation to equities. A.M. Best will continue to monitor BancInsure’s ratings to assess its susceptibility to any additional negative effects from the continuing turmoil in the financial markets as well as underwriting risk and any other unexpected events. A.M. Best is concerned that the continuing turmoil in the financial markets could further erode BancInsure’s capital position and negatively impact its earnings in 2009. Although, this is mitigated in part by the forward looking initiatives BancInsure has established along with management’s implementation of a more robust and enhanced risk management process of identification and quantification of risk correlation. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. 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. ### |
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