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Report Date : |
01.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
SENTRY CASUALTY
COMPANY |
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Registered Office : |
1800 North Pointe Drive, Stevens Point, WI 54481 |
|
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Country : |
United States |
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Date of Incorporation : |
23.07.1973 |
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Legal Form : |
Insurance Company |
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Line of Business : |
Subject is an insurance company |
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No. of Employees : |
4800+ |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear
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NOTES:
Any query related
to this report can be made on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June
30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
United States |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
United States -
ECONOMIC OVERVIEW
The US has the largest and most
technologically powerful economy in the world, with a per capita GDP of
$48,100. In this market-oriented economy, private individuals and business
firms make most of the decisions, and the federal and state governments buy
needed goods and services predominantly in the private marketplace. US business
firms enjoy greater flexibility than their counterparts in Western Europe and
Japan in decisions to expand capital plant, to lay off surplus workers, and to
develop new products. At the same time, they face higher barriers to enter
their rivals' home markets than foreign firms face entering US markets. US
firms are at or near the forefront in technological advances, especially in
computers and in medical, aerospace, and military equipment; their advantage
has narrowed since the end of World War II. The onrush of technology largely
explains the gradual development of a "two-tier labor market" in
which those at the bottom lack the education and the professional/technical
skills of those at the top and, more and more, fail to get comparable pay
raises, health insurance coverage, and other benefits. Since 1975, practically
all the gains in household income have gone to the top 20% of households. Since
1996, dividends and capital gains have grown faster than wages or any other category
of after-tax income. Imported oil accounts for nearly 55% of US consumption.
Oil prices doubled between 2001 and 2006, the year home prices peaked; higher
gasoline prices ate into consumers' budgets and many individuals fell behind in
their mortgage payments. Oil prices increased another 50% between 2006 and
2008. In 2008, soaring oil prices threatened inflation and caused a
deterioration in the US merchandise trade deficit, which peaked at $840
billion. In 2009, with the global recession deepening, oil prices dropped 40%
and the US trade deficit shrank, as US domestic demand declined, but in 2011
the trade deficit ramped back up to $803 billion, as oil prices climbed once
more. The global economic downturn, the sub-prime mortgage crisis, investment bank
failures, falling home prices, and tight credit pushed the United States into a
recession by mid-2008. GDP contracted until the third quarter of 2009, making
this the deepest and longest downturn since the Great Depression. To help
stabilize financial markets, in October 2008 the US Congress established a $700
billion Troubled Asset Relief Program (TARP). The government used some of these
funds to purchase equity in US banks and industrial corporations, much of which
had been returned to the government by early 2011. In January 2009 the US
Congress passed and President Barack OBAMA signed a bill providing an
additional $787 billion fiscal stimulus to be used over 10 years - two-thirds
on additional spending and one-third on tax cuts - to create jobs and to help
the economy recover. In 2010 and 2011, the federal budget deficit reached
nearly 9% of GDP; total government revenues from taxes and other sources are
lower, as a percentage of GDP, than that of most other developed countries. The
wars in Iraq and Afghanistan required major shifts in national resources from
civilian to military purposes and contributed to the growth of the US budget
deficit and public debt - through 2011, the direct costs of the wars totaled
nearly $900 billion, according to US government figures. In March 2010,
President OBAMA signed into law the Patient Protection and Affordable Care Act,
a health insurance reform bill that will extend coverage to an additional 32
million American citizens by 2016, through private health insurance for the
general population and Medicaid for the impoverished. Total spending on health
care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In
July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer
Protection Act, a law designed to promote financial stability by protecting
consumers from financial abuses, ending taxpayer bailouts of financial firms,
dealing with troubled banks that are "too big to fail," and improving
accountability and transparency in the financial system - in particular, by
requiring certain financial derivatives to be traded in markets that are
subject to government regulation and oversight. Long-term problems include
inadequate investment in deteriorating infrastructure, rapidly rising medical
and pension costs of an aging population, sizable current account and budget
deficits - including significant budget shortages for state governments -
energy shortages, and stagnation of wages for lower-income families.
|
Source : CIA |
Company name: SENTRY
CASUALTY COMPANY
Address: 1800
North Pointe Drive, Stevens Point, WI 54481 - USA
Telephone: +1
715-346-6000
Fax: +1
715-346-7516
Website: www.sentry.com
Corporate ID#: -
State: Wisconsin
Judicial form: Insurance
Company
Date incorporated: 07-23-1973
Stock: -
Value: -
Name of
manager: Dale R. SCHUH
Business:
This is an insurance
company.
EIN: --
Staff: 4,800+
Operations & branches:
At the headquarters,
we find the corporate headquarters, owned.
The Company is
allowed to do business in Arkansas, California, Colorado, Florida, Georgia,
Missouri, Maryland, Virginia and West Virginia.
Shareholders:
SENTRY INSURANCE A MUTUAL COMPANY
Management:
Dale SCHUH, Chairman and CEO
Mr. Dale Robert Schuh is the Chief Executive
Officer and President at Sentry Insurance a Mutual Company. He also serves as
the Chairman of Sentry Insurance a Mutual Company. Mr. Schuh serves as the
Chairman and Director of Sentry Investment Management, L.L.C. He is a graduate
of Lawrence University.
Daniel L. REVAI, President and Director
Michael J. WILLIAMS, Vice President
Kenneth ERLER, Director and Secretary
William J. LOHR, Director and Treasurer
Subsidiaries
and partnership:
The
group includes:
· Sentry Insurance a Mutual Company
·
Dairyland County Mutual Insurance Company of
Texas
· Dairyland Insurance Company
· Middlesex Insurance Company
· Parker Centennial Assurance Company
· Patriot General Insurance Company
· Peak Property and Casualty Insurance Corp.
· Sentry Life Insurance Company
· Sentry Life Insurance Company of New York
· Sentry Select Insurance Company
· Sentry Casualty Company
· Sentry Lloyds of Texas
· Viking Insurance Company of Wisconsin
· Sentry Equity Services, Inc.
· Parker Services, L.L.C.
· Parker Stevens Agency, L.L.C.
· Parker Stevens Insurance Agency of Massachusetts
· Parker Assurance, Ltd.
· Point Insurance Agency, LLC
In United States,
privately held corporations are not required to publish any financials.
On a direct call, a
sales assistant controlled the present report but deferred any financials. He
sent us to the website for more information.
We sent a fax but no
answer received.
Consolidated revenue
is the range of USD 2,500,000,000=
Banks: Wells Fargo Bank
Legal
filings & complaints:
As of today date, there is no legal filing
pending with the Courts.
Secured debts summary (UCC): None (in Wisconsin)
Standard
& Poor’s
|
United States of America Long-Term Rating Lowered
To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative |
|
Publication date: 05-Aug-2011 20:13:14 EST |
·We
have lowered our long-term sovereign credit rating on the United States of
America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.
·We have also removed
both the short- and long-term ratings from CreditWatch negative.
·The downgrade reflects
our opinion that the fiscal consolidation plan that Congress and the
Administration recently agreed to falls short of what, in our view, would be
necessary to stabilize the government's medium-term debt dynamics.
·More broadly, the
downgrade reflects our view that the effectiveness, stability, and predictability
of American policymaking and political institutions have weakened at a time of
ongoing fiscal and economic challenges to a degree more than we envisioned when
we assigned a negative outlook to the rating on April 18, 2011.
·Since then, we have
changed our view of the difficulties in bridging the gulf between the political
parties over fiscal policy, which makes us pessimistic about the capacity of
Congress and the Administration to be able to leverage their agreement this
week into a broader fiscal consolidation plan that stabilizes the government's
debt dynamics any time soon.
·The outlook on the
long-term rating is negative. We could lower the long-term rating to 'AA'
within the next two years if we see that less reduction in spending than agreed
to, higher interest rates, or new fiscal pressures during the period result in
a higher general government debt trajectory than we currently assume in our
base case.
TORONTO
(Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services
said today that it lowered its long-term sovereign credit rating on the United
States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the
outlook on the long-term rating is negative. At the same time, Standard &
Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard
& Poor's removed both ratings from CreditWatch, where they were placed on
July 14, 2011, with negative implications.
The transfer and convertibility (T&C) assessment of the U.S.--our
assessment of the likelihood of official interference in the ability of
U.S.-based public- and private-sector issuers to secure foreign exchange for
debt
service--remains 'AAA'.
We
lowered our long-term rating on the U.S. because we believe that the prolonged
controversy over raising the statutory debt ceiling and the related fiscal
policy debate indicate that further near-term progress containing the growth in
public spending, especially on entitlements, or on reaching an agreement on
raising revenues is less likely than we previously assumed and will remain a
contentious and fitful process. We also believe that the fiscal consolidation
plan that Congress and the Administration agreed to this week falls short of
the amount that we believe is necessary to stabilize the general government
debt burden by the middle of the decade.
Our
lowering of the rating was prompted by our view on the rising public debt
burden and our perception of greater policymaking uncertainty, consistent with
our criteria (see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011,
especially Paragraphs 36-41). Nevertheless, we view the U.S. federal
government's other economic, external, and monetary credit attributes, which
form the basis for the sovereign rating, as broadly unchanged.
We
have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget
Control Act Amendment of 2011 has removed any perceived immediate threat of
payment default posed by delays to raising the government's debt ceiling. In
addition, we believe that the act provides sufficient clarity to allow us to
evaluate the likely course of U.S. fiscal policy for the next few years.
The political brinksmanship of recent months highlights what we see as
America's governance and policymaking becoming less stable, less effective, and
less predictable than what we previously believed. The statutory debt ceiling
and the threat of default have become political bargaining chips in the debate
over fiscal policy. Despite this year's wide-ranging debate, in our view, the
differences between political parties have proven to be extraordinarily
difficult to bridge, and, as we see it, the resulting agreement fell well short
of the comprehensive fiscal consolidation program that some proponents had
envisaged until quite recently. Republicans and Democrats have only been able
to agree to relatively modest savings on discretionary spending while
delegating to the Select Committee decisions on more comprehensive measures. It
appears that for now, new revenues have dropped down on the menu of policy
options. In addition, the plan envisions only minor policy changes on Medicare
and little change in other entitlements,
the
containment of which we and most other independent observers regard as key to
long-term fiscal sustainability.
Our
opinion is that elected officials remain wary of tackling the structural issues
required to effectively address the rising U.S. public debt burden in a manner
consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011,
especially Paragraphs 36-41). In our view, the difficulty in framing a
consensus on fiscal policy weakens the government's ability to manage public
finances and diverts attention from the debate over how to achieve more
balanced and dynamic economic growth in an era of fiscal stringency and
private-sector deleveraging (ibid). A new political consensus might (or might
not) emerge after the 2012 elections, but we believe that by then, the
government debt burden will likely be higher, the needed medium-term fiscal
adjustment potentially greater, and the inflection point on the U.S.
population's demographics and other age-related spending drivers closer at hand
(see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now,"
June 21, 2011).
Standard
& Poor's takes no position on the mix of spending and revenue measures that
Congress and the Administration might conclude is appropriate for putting the
U.S.'s finances on a sustainable footing.
The
act calls for as much as $2.4 trillion of reductions in expenditure growth over
the 10 years through 2021. These cuts will be implemented in two steps: the
$917 billion agreed to initially, followed by an additional $1.5 trillion that
the newly formed Congressional Joint Select Committee on Deficit Reduction is
supposed to recommend by November 2011. The act contains no measures to raise
taxes or otherwise enhance revenues, though the committee could recommend them.
The
act further provides that if Congress does not enact the committee's
recommendations, cuts of $1.2 trillion will be implemented over the same time
period. The reductions would mainly affect outlays for civilian discretionary
spending, defense, and Medicare. We understand that this fall-back mechanism is
designed to encourage Congress to embrace a more balanced mix of expenditure
savings, as the committee might recommend.
We
note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget
Office (CBO) estimated total budgetary savings under the act to be at least
$2.1 trillion over the next 10 years relative to its baseline assumptions. In
updating our own fiscal projections, with certain modifications outlined below,
we have relied on the CBO's latest "Alternate Fiscal Scenario" of
June 2011, updated to include the CBO assumptions contained in its Aug. 1
letter to Congress. In general, the CBO's "Alternate Fiscal Scenario"
assumes a continuation of recent Congressional action overriding existing law.
We
view the act's measures as a step toward fiscal consolidation. However, this is
within the framework of a legislative mechanism that leaves open the details of
what is finally agreed to until the end of 2011, and Congress and the
Administration could modify any agreement in the future. Even assuming that at
least $2.1 trillion of the spending reductions the act envisages are
implemented, we maintain our view that the U.S. net general government debt
burden (all levels of government combined, excluding liquid financial assets)
will likely continue to grow. Under our revised base case fiscal
scenario--which we consider to be consistent with a 'AA+' long-term rating and
a negative outlook--we now project that net general government debt would rise
from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021.
Even the projected 2015 ratio of sovereign indebtedness is high in relation to
those of peer credits and, as noted, would continue to rise under the act's
revised policy settings.
Compared
with previous projections, our revised base case scenario now assumes that the
2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We
have changed our assumption on this because the majority of Republicans in
Congress continue to resist any measure that would raise revenues, a position
we believe Congress reinforced by passing the act. Key macroeconomic
assumptions in the base case scenario include trend real GDP growth of 3% and
consumer price inflation near 2% annually over the decade.
Our
revised upside scenario--which, other things being equal, we view as consistent
with the outlook on the 'AA+' long-term rating being revised to stable--retains
these same macroeconomic assumptions. In addition, it incorporates $950 billion
of new revenues on the assumption that the 2001 and 2003 tax cuts for high
earners lapse from 2013 onwards, as the Administration is advocating. In this
scenario, we project that the net general government debt would rise from an
estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our
revised downside scenario--which, other things being equal, we view as being
consistent with a possible further downgrade to a 'AA' long-term
rating--features less-favorable macroeconomic assumptions, as outlined below
and also assumes that the second round of spending cuts (at least $1.2
trillion) that the act calls for does not occur. This scenario also assumes
somewhat higher nominal interest rates for U.S. Treasuries. We still believe
that the role of the U.S. dollar as the key reserve currency confers a
government funding advantage, one that could change only slowly over time, and
that Fed policy might lean toward continued loose monetary policy at a time of
fiscal tightening. Nonetheless, it is possible that interest rates could rise
if investors re-price relative risks. As a result, our alternate scenario
factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to
the base and upside cases from 2013 onwards. In this scenario, we project the
net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to
101% by 2021.
Our
revised scenarios also take into account the significant negative revisions to
historical GDP data that the Bureau of Economic Analysis announced on July 29.
From our perspective, the effect of these revisions underscores two related
points when evaluating the likely debt trajectory of the U.S. government.
First, the revisions show that the recent recession was deeper than previously
assumed, so the GDP this year is lower than previously thought in both nominal
and real terms. Consequently, the debt burden is slightly higher. Second, the
revised data highlight the sub-par path of the current economic recovery when
compared with rebounds following previous post-war recessions. We believe the
sluggish pace of the current economic recovery could be consistent with the
experiences of countries that have had financial crises in which the slow
process of debt deleveraging in the private sector leads to a persistent drag
on demand. As a result, our downside case scenario assumes relatively modest
real trend GDP growth of 2.5% and inflation of near 1.5% annually going
forward.
When
comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as
relevant peers--Canada, France, Germany, and the U.K.--we also observe, based
on our base case scenarios for each, that the trajectory of the U.S.'s net
public debt is diverging from the others. Including the U.S., we estimate that
these five sovereigns will have net general government debt to GDP ratios this
year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at
74%. By 2015, we project that their net public debt to GDP ratios will range
between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt
burden at 79%. However, in contrast with the U.S., we project that the net
public debt burdens of these other sovereigns will begin to decline, either
before or by 2015.
Standard
& Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C
assessment reflects our view of the likelihood of the sovereign restricting
other public and private issuers' access to foreign exchange needed to meet
debt service. Although in our view the credit standing of the U.S. government
has deteriorated modestly, we see little indication that official interference
of this kind is entering onto the policy agenda of either Congress or the
Administration. Consequently, we continue to view this risk as being highly
remote.
The
outlook on the long-term rating is negative. As our downside alternate fiscal
scenario illustrates, a higher public debt trajectory than we currently assume
could lead us to lower the long-term rating again. On the other hand, as our
upside scenario highlights, if the recommendations of the Congressional Joint
Select Committee on Deficit Reduction--independently or coupled with other
initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high
earners--lead to fiscal consolidation measures beyond the minimum mandated, and
we believe they are likely to slow the deterioration of the government's debt
dynamics, the long-term rating could stabilize at 'AA+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties
seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.