A.M. Best Affirms Rating Olympus Reinsurance Company Ltd.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 13, 2003 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Olympus 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. Company Ltd. (Hamilton, Bermuda). The rating outlook is stable. The rating reflects the company's solid capitalization, strong operating performance, clean balance sheet Clean Balance Sheet Refers to a company whose balance sheet has very little or no debt. Notes: A company is told to "clean up" its balance sheet if they are exposed to large amounts of debt. , short-tail property line profile and lean operating infrastructure, which allows Olympus Re to amend business plans quickly when market conditions change. Olympus Re's unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. capital provides additional capacity to Folksamerica Re, which is currently rated A (Excellent) through quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). agreements. The rating also considers the underwriting and investment management expertise provided to the company by Folksamerica Re and affiliates of White Mountains Insurance Group White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance. External links
Olympus Re's intentionally lean infrastructure allows it to write business in a low cost environment and to amend its business plan quickly when market conditions change. In addition, if the company cannot write business at favorable terms, Olympus Re will return capital to investors through a formal share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. The first share repurchase was completed in June 2003. The effects of any future returned capital on the company's rating and capital strength will be assessed by A.M. Best. Due to the high volume of premiums produced by the Folksamerica Re quota share agreements, a change in Folksamerica Re's business position could affect Olympus Re's rating. Increased capacity for property classes of business may also pressure future operating margins. 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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