A.M. Best Affirms Rating of Alliance International Reinsurance Public Company Limited; Assigns Issuer Credit Rating.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 B++ (Very Good) and assigned an issuer credit rating of "bbb" to Alliance International 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. Public Company Limited (Alliance Re) (Cyprus). The outlook for both ratings is stable. The ratings reflect Alliance Re's strong 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 good business profile. An offsetting factor is the high expense ratio undermining the technical performance. A.M. Best believes Alliance Re is likely to maintain a strong risk-adjusted capitalisation with capital and surplus expected to grow steadily over the next two years, largely as a result of improving 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. . Further diversification into the Middle East region, where significant reinsurance opportunities are projected to arise in the coming few years, is expected to have a positive impact in stabilising Alliance Re's premium income in 2006 following the 12% decline seen in 2004 (mainly driven by exchange rate movements) and maintaining its good business profile. The company's focus on the Middle Eastern reinsurance market is likely to increase the proportion of facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. business in its portfolio. In 2004, gross written premiums under the treaty programme accounted for approximately 86%, of which 48% were on a non-proportional basis. A.M. Best believes that Alliance Re's expense ratio will remain relatively high at approximately 40% and is likely to impede im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped improvement of the technical performance over the next two years, with the company's profits becoming increasingly reliant on the investment income. The company's good claims experience is reflected by an estimated claims ratio of approximately 60% over the next two years compared to 57% in 2004. 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. For current Best's Ratings, independent data and analysis on more than 330 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 http://www.ambest.com. |
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