A.M. Best Revises Outlook to Negative for Lyndon Property Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating of “a-” of Lyndon Property Insurance Company (Lyndon Property) (St. Louis, MO).

The ratings of Lyndon Property reflect its adequate capitalization, favorable operating performance in its core business of vehicle service contracts and the benefits derived from being part of Protective Life Corporation (Protective) (Birmingham, AL) [NYSE: PL].

The ratings recognize the $28 million capital contribution made by its immediate parent, Protective Life Insurance Company (PLIC) (Brentwood, TN) in 2006 (PLIC has a FSR of A+ (Superior) with a negative outlook), and the risk management support provided to Lyndon Property by Protective.

These positive rating factors are offset by Lyndon Property’s challenges in its discontinued lines of business, now in run off. The negative outlook reflects the weakened capitalization and limitations on financial flexibility at PLIC.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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.