S&P Rates First Central National Life Ins of NY'Api'.

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/20/98 - Standard & Poor's today assigned its single-'Api' insurer financial strength rating to First Central National Life Insurance Co. of New York.

First Central National Life Insurance Co. of New York is licensed in Delaware

and New York, and commenced operations in 1971. The company is owned by Beneficial Corp., a financial services company which was acquired by Household International Inc. in April 1998. First Central provides credit life and accident & health coverages, sold through the Beneficial consumer finance network in New York.

The following factors were incorporated in the single-'Api' rating.

-- Standard & Poor's believes that the company is a strategically important member of the Household Finance group and therefore group support is a factor in the rating.

-- The company has extremely strong capitalization, as measured by Standard & Poor's capital adequacy ratio of over 300%.

-- Operating performance is excellent, with an earnings adequacy ratio of 655.6%, as calculated by Standard & Poor's model.

-- The company has strong liquidity, with a liquidity ratio of in excess of 300%.

-- The company is concentrated, both geographically and by line of business.

-- Net premium income has displayed volatility over the past five years.

'Pi' ratings, denoted with a pi subscript, are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a pi subscript. Pi ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a pi subscript are not subject to potential CreditWatch listings.

Ratings with a pi subscript generally are not modified with 'plus' or 'minus' designations. However, such designations may be assigned when the insurer's financial strength rating is constrained by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said. -- CreditWire