Tuesday, May 05, 2009
Perception Playing a Starring Role in Ratings?
With the company slated to report its Q1 earnings late today, investors are wondering how Principal Financial Group will fare in light of several other downgrades issued. Shortly after Moody's downgraded Principal Financial's senior debt rating to A3 from A2 on March 18, Barron’s reported that the insurer had been “unduly punished for the sins of its peers,” noting that the company’s stock had seen a larger drop than its competitors, chiefly due to fears of dilution over possible infusion of federal funds.
And noting its connection to structured securities, including residential and commercial mortgage-backed securities, A.M. Best Co. has revised the outlook for Gerber Life Insurance Co., White Plaines, N.Y., to negative from stable, and affirmed the financial strength rating (FSR) of “A” (excellent) and issuer credit rating (ICR) of "a." The agency said the rating also was due to the deteriorating levels of statutory profitability within its ordinary life line of business. Nestle SA, Switzerland, acquired Gerber Life in August 2007 from Novartis. Nestle is a food and beverage conglomerate with operations in almost every country around the world...
Insurance Networking: Perception Playing a Starring Role in Ratings?
And noting its connection to structured securities, including residential and commercial mortgage-backed securities, A.M. Best Co. has revised the outlook for Gerber Life Insurance Co., White Plaines, N.Y., to negative from stable, and affirmed the financial strength rating (FSR) of “A” (excellent) and issuer credit rating (ICR) of "a." The agency said the rating also was due to the deteriorating levels of statutory profitability within its ordinary life line of business. Nestle SA, Switzerland, acquired Gerber Life in August 2007 from Novartis. Nestle is a food and beverage conglomerate with operations in almost every country around the world...
Insurance Networking: Perception Playing a Starring Role in Ratings?
Permalink posted by markw @ 4:59 AM 
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