A.M. Best Affirms Financial Strength Rating of Connaught Insurance Company Limited; Assigns Issuer Credit Rating.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B+ (Very Good) and assigned an issuer credit rating of "bbb-" to Connaught Insurance Company Limited (Connaught) (Guernsey), the captive insurance Captive insurance companies are limited purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups, they sometimes also insure risks of the parent company's customers. company of Thomas Greg and Sons Limited (TGS TGS Tokyo Game Show TGS Ticket-Granting Service TGS Ticket-granting Server TGS The Good Shepherd TGS Teen Girl Squad TGS The Gargoyles Saga TGS Texas Gourd Society TGS Tomato Growers Supply TGS Trinity Grammar School TGS Tomographic Gamma Scanner ), a printing and security specialist. The outlook for both ratings is stable. The rating reflects Connaught's strong risk-adjusted capitalisation and good operating performance. Offsetting factors are the volatile nature of the policies underwritten and the high concentration risk in the market in which TGS operates. Connaught is integral in facilitating the operations of TGS as it provides the parent with insurance cover at better conditions than the open market. The company's portfolio has limited diversification and depends highly upon one South American state, resulting in a high concentration risk. A.M. Best expects stable premiums to generate a good profit of approximately USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 0.8 million in 2005, which is expected to further improve Connaught's strong risk-adjusted capitalisation. A.M. Best believes that the cash in transit policy is exposed to a high level of claims volatility despite a good 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. programme that limits potential losses to below USD 3 million. A.M. Best therefore expects the excellent loss ratio experienced in 2004 (approximately 12%) to deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. to approximately 40% over the next two years. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. 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 http://www.ambest.com. |
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