A.M. Best Affirms A -Excellent- Rating of Gerling Global Life Insurance and Gerling Global Life Reinsurance.Business & Insurance Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 20, 2000 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the A (Excellent) financial strength rating of Gerling Global Life Insurance Company, Toronto, Ontario, Canada. The rating reflects the parental guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. of Gerling Global Life's financial obligations by Gerling-Konzern Globale Ruckversicherungs-AG and the company's strategic importance as a marketing arm of its parent. The rating also reflects Gerling Global Life's favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. capitalization and its business model whereby it uses the company's U.S. branch to conduct U.S. life reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. business in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with its U.S.-domiciled sister company, Gerling Global Life Reinsurance Co. Since exiting its direct insurance business, Gerling Global Life has focused primarily on developing its U.S. life reinsurance business while maintaining a complementary presence in Canada and Mexico. The company's emphasis on its core business lines is resulting in greater quoting activity and higher reinsurance business volume. As a strategic subsidiary of Gerling-Konzern Globale, Gerling Global Life--together with Los Angeles-based Gerling Global Life Re--serves as the marketing arm for the parent company's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. life reinsurance operations. Gerling-Konzern provides reinsurance capacity to Gerling Global Life, enabling the company to accept greater volumes of business and higher risks. In addition, the parent company's financial commitment to its subsidiary has been demonstrated in recent years through capital contributions. The rating is also based on the company's U.S. life reinsurance business strategy, which uses Gerling Global Life Re to effectively market business as a single unit. A.M. Best expects the company to gain increased U.S. market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" by virtue of Gerling Global Life's dual strategy. The company also expects to generate new business opportunities through a recent strategic alliance. Offsetting these positive factors are the ongoing competitive pressures among the small number of companies in the U.S. life reinsurance market and the challenges associated with achieving meaningful business growth in the highly competitive Canadian reinsurance market. However, the company's ability to successfully build market share in Canada may be positively impacted by the consolidation in the Canadian reinsurance market. In addition, Gerling Global Life Reinsurance Company, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , had its A (Excellent) rating affirmed, reflecting its important role to the Gerling group's overall North American strategy. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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