A.M. Best Places Ratings of American Medical and Life Insurance Company Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with negative implications the financial strength rating of B- (Fair) and issuer credit rating of “bb-” of American Medical and Life Insurance Company (AMLI) (New York, NY). AMLI is a wholly owned subsidiary of TREK Holdings, Inc.

The rating actions reflect the recent suspension of AMLI’s insurance license by the Michigan Office of Insurance and Financial Regulation following the company’s recent negative media coverage surrounding the distribution of its limited medical products. While AMLI’s presence in Michigan is limited, A.M. Best is concerned about its potential future liability related to these events and its exposure to future license suspensions by other state insurance regulators.

AMLI’s ratings will remain under review with negative implications until A.M. Best has completed further dialogue with the company and has had an opportunity to better assess the ultimate impact of these events on its strategic business plans, its liability and the impact on its financial statements, the potential for additional state regulatory actions and management’s corrective action plans. A.M. Best notes that AMLI’s ratings may incur downward rating pressure based on the results of these assessments.

AMLI markets primarily limited medical insurance products chiefly to associations.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Understanding BCAR for Life/Health Insurers” and “Risk Management and the Rating Process for Insurance Companies.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Brian Virostek,908-439-2200, ext. 5531
Financial Analyst
[email protected]
or
Joseph Zazzera, MBA, 908-439-2200, ext. 5797
Managing Senior Financial Analyst
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.