A.M. Best Affirms Rating of African Reinsurance Corporation.OLDWICK, N.J. -- 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 financial strength rating of A- (Excellent) of African 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. Corporation (Africa Re) (Nigeria). The rating outlook is stable. The rating reflects Africa Re's leading market position in Africa, enhanced 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 and strong operating performance. Offsetting factors are Africa Re's relatively small capital base and its restricted investment performance. Leading market position in Africa--The company's main focus is on the African continent, where it holds a leading market position. Africa Re's expansion into the Middle East and India, combined with rate increases in several African markets, resulted in strong growth with consolidated gross premiums increasing by 56% in 2003. A.M. Best anticipates premium growth to be approximately 15% in 2004 as the premium rates stabilise Verb 1. stabilise - support or hold steady and make steadfast, with or as if with a brace; "brace your elbows while working on the potter's wheel" brace, stabilize, steady in the African markets. Excellent risk-based capitalisation--Equity capital increased by 50% in 2003, and further capital injections are planned for 2004. Africa Re's absolute capital base remains relatively small compared to international reinsurers but sufficient to support its business strategy. Strong operating performance--A.M. Best expects Africa Re's underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance to improve in 2004, leading to a non-life combined ratio of approximately 86% (89.7% in 2003). The 3.1 percentage points deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of this ratio in 2003 was caused primarily by two large losses in North Africa (including the Algerian earthquake). Investment returns remained limited given that the majority (91%) of invested assets is held in fixed terms cash deposits. However, the company is planning a gradual shift towards higher yielding fixed income securities. For current 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. , independent data and analysis on more than 470 reinsurance companies, please visit http://www.ambest.com/reinsurance/. 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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