A.M. Best Affirms Rating of Allianz Cornhill Insurance plc.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+ (Superior) of Allianz Cornhill Insurance plc (Allianz Cornhill) (United Kingdom). The rating reflects A.M. Best's view of Allianz Cornhill as a core subsidiary of its ultimate parent, Allianz Aktiengesellschaft, its excellent stand-alone risk-adjusted capitalisation and business profile and its improving operating performance. The rating outlook is negative, which is in line with that of its parent. Excellent capitalisation--Allianz Cornhill's stand-alone risk-adjusted capitalisation is expected to be managed at least in the excellent range despite the prospect of higher dividend payments, which are in line with the parent company's cost of capital requirement. Improving operating performance--A.M. Best believes that the credible 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. , claims management and cost-reduction initiatives implemented by Allianz Cornhill should enable the company to report a combined ratio of approximately 95% and a pre-tax return on equity above 15% at year-end 2004. Allianz Cornhill reported a 278% increase in 2003 pre-tax earnings to 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. 152.2 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. 270.7 million) and a combined ratio of 95.2%. Excellent business position--Allianz Cornhill is a leading provider in the UK commercial market and is a class leader in selected personal lines, such as animal health insurance. Although the downward phase of the motor pricing cycle is likely to constrain con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. revenues, growth of approximately 5% is expected in 2004 as the company targets new business opportunities in the small-to-medium enterprise (SME (1) (Small and Medium-sized Enterprise) See SMB. (2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. ) market and seeks to grow its household account. 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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