MOODY'S CONFIRMS DEBT RATINGS OF DELPHI FINANCIAL GROUP (SENIOR AT Ba2) AND DELPHI CAPITAL L.L.C.
New York, 10-06-95 -- Moody's Investors Service confirmed the Ba2 senior rating of Dephi Financial Group, Inc. (Delphi), and the provisional ratings of Delphi and Delphi Funding L.L.C. (Delphi Funding) under Delphi's $150 million shelf registration as follows: senior debt, subordinated debt and preferred stock issued by Delphi confirmed at (P) Ba2, (P)B1, ( P)"b1", respectively, and preferred stock issued by Delphi Funding at (P)"b1". This follows the recent announcement by Delphi that it had concluded a definitive agreement to acquire SIG Holdings, Inc. (SIG Holdings) and it subsidaries in a tax-free merger. The transaction is subject to stockholder and regulatory approvals.
According to Moody's, the rating confirmations are based on Delphi's proposed financing of the transaction -- which includes the issuance of at least 4.4 million shares of new common stock -- and should have a neutral impact on the group's leverage and financial flexibility. The rating actions also reflect the solid investment portfolio and good earnings outlook of Safety National Casualty Corporation -- the primary operating company of SIG Holdings, which specializes in providing excess workers' compensation to the self-insured market. These strengths are tempered by the high leverage, large mortgage-backed securities portfolio, and exposure to speculative investments at Delphi.
Delphi Financial Group, Inc. is an insurance holding company that underwrites nationally, through its principal subsidiary, Reliance Standard Life Insurance Company, a portfolio of long-term disability and personal accident insurance, targeted principally at the employee benefits market. It also operates an asset accumulation business. At June 30, 1995, the group had $2.3 billlion of GAAP assets and equity of $190 million.
SIG Holding, Inc., through its St. Louis-based subsidiary, Safety National Casualty Corporation, is a leading insurance specialist providing excess workers' compensation products to the self-insured market. At June 30, 1995, the company had total assets of $536 million and shareholders' equity of approximately $81 million.
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