A.M. Best Affirms Rating of ACE Insurance S.A. - N.V.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 13, 2003 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 ACE Insurance S.A. - N.V. (ACE Europe) (Belgium). The rating outlook is stable. The rating reflects the company's strategic importance to the ACE Group, excellent and improving risk-adjusted capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper , excellent business profile in the UK and continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. and prospective improvement in financial performance from 2003. A partially offsetting factor is the company's heavy reliance on 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. and the impact that this has on liquidity. A.M. Best has been informed that the assets, liabilities and obligations of ACE Europe will be transferred to another ACE Group company in 2005, pending regulatory approval. Excellent and improving risk-adjusted capitalisation--Although under pressure in 2002 as a result of growth and retained losses, the company's risk-adjusted capitalisation remained excellent as a result of capital contributions of 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. 114 million during the year. A.M. Best expects further improvement in risk-adjusted capitalisation in 2003 and 2004 as a result of another capital contribution of USD 69 million at the beginning of 2003 and substantial net 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. in excess of EUR EUR In currencies, this is the abbreviation for the Euro. 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. 100 million (USD 115 million) in each year, subject to normal loss experience. Reinsurance reliance--ACE Europe cedes over half of its gross written premium to reinsurers (57% in 2002 and approximately 53% expected in 2003), and although nearly half of the premium is ceded to ACE Group companies, has a significant reliance on the reinsurance market. This factor also has an impact on the company's current liquidity--total investments to total liabilities less capital and surplus--because of the high level of reinsured technical reserves. Current liquidity at year-end 2002 was low at 32.4%, although A.M. Best expects improvement in this ratio in 2003 and 2004 to approximately 50%. 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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