CHICAGO, May 9 /PRNewswire/ -- Duff & Phelps Credit Rating Company has
assigned an initial claims paying ability rating of 'A-' (Single-A-Minus) to
Guarantee Trust Life Insurance Company (Guarantee Trust). The Rating Outlook
is Stable.
This high claims paying ability rating is supported by the company's solid
presence and expertise in a diverse group of niche life, accident and health
product lines, strong management, an invested asset portfolio of generally
high quality, and adequate capitalization.
Also taken in consideration is Guarantee Trust's low consolidated
profitability despite three of its four business units producing stable and
healthy profit streams and its limited financial flexibility given both its
status as a modest-sized mutual insurer, and the debt that it has guaranteed
for its downstream marketing organizations. DCR believes that like many
insurers today, the company's biggest challenge lies in finding ways to grow
profitability.
Guarantee Trust is a mutual life and health insurance company based in
Glenview, Illinois. The company markets, underwrites and services a variety of
life, accident and health niche products to the middle market. Products
offered include credit life and disability, student accident and college
health, a variety of specialty life insurance, and senior market health
policies. As of yearend 1999, Guarantee Trust had $195 million of admitted
assets and $49 million of adjusted statutory surplus.
For additional information, visit DCR's Web site at http://www.dcrco.com
(Quick Search: Guarantee Trust). DCR's research is also available on Bloomberg
at DCR, FirstCall's BondCall Direct/Research Direct at
http://www.firstcall.com and Multex at http://www.multex.com, as well as
through other third-party providers.
SOURCE Duff & Phelps Credit Rating Co.
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Related links:
http://www.dcrco.com
CONTACT:
R. Andrew Davidson, CFA, 312-368-3144,
davidson@dcrco.com, or John F. Bareiss, CFA, 312-368-3162,
bareiss@dcrco.com, both of Duff & Phelps Credit Rating Co.
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