A.M. Best Affirms Financial Strength Rating of Ecclesiastical Insurance Office plc; Assigns Issuer Credit Rating.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and assigned an issuer credit rating of "a-" to Ecclesiastical Insurance  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Office plc (EIO (Enhanced I/O) A hardware interface for HP printers that is used for adding an internal print server and network adapter, a hard disk and other plug-in functionality. EIO cards are smaller than previous MIO cards and more energy efficient. They use the PCI bus. See MIO. ) (United Kingdom). The rating outlook remains stable. The ratings reflect EIO's excellent risk-adjusted capitalisation, excellent underwriting performance and strong business profile within its niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . An offsetting factor continues to be the company's high exposure to equities. In A.M. Best's opinion, EIO is likely to continue to consolidate its excellent risk-adjusted capitalisation in 2005, supported by strong retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. and the placement in April 2005 of irredeemable preference shares, with a nominal value Nominal Value The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates. Notes: When referring to fixed-income securities, the nominal value is also the face value. of GBP GBP In currencies, this is the abbreviation for the British Pound. 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. 19 million (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. 33 million), for GBP 23 million (USD 40 million). A.M. Best's projection for shareholders' funds for year-end 2005 is a 21% increase to GBP 255 million (USD 446 million). A.M. Best believes that this improvement is partly cyclical, reflecting the benefit of strong market conditions for EIO's specialist lines. A.M. Best believes that EIO will continue to produce excellent underwriting returns in 2005. EIO's position as a niche insurer is expected to partially insulate it from the softening market, allowing it to maintain its combined ratio in the range of 90% to 95% in 2005 and 2006. This represents a deterioration from 2004's combined ratio of 84% as claims return to a more normal level after a particularly benign period in 2003 and 2004. EIO's business profile in the niche church and charity sectors remains excellent. A.M. Best believes the company's consistently high retention rate (anticipated to be over 90% for 2005) in its core portfolios reflects its customer-focused approach. EIO also benefits from high penetration rates in other specialist areas such as independent schools and care homes, and A.M. Best anticipates that the company will continue to successfully develop its commercial portfolio with a focus on risks related to its core business. An offsetting factor is EIO's exposure to equities, which A.M. Best anticipates will remain at approximately 25% of 2005's total invested assets (26% in 2004). A.M. Best believes that whilst this has supported relatively high yields (8.3% in 2004), it exposes the company's future earnings to volatility. 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 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 www.ambest.com. |
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