A.M. Best Affirms Rating of Aspen Insurance Limited.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 8, 2003 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Aspen aspen, in botany aspen: see willow. Aspen, city, United States Aspen (ăs`pən), city (1990 pop. 5,049), alt. 7,850 ft (2,390 m), seat of Pitkin co., S central Colo. Insurance Limited (Aspen), a Bermuda-based reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. . The outlook has been revised to stable from positive due to the slower than expected development of the company's business in the first half of 2003. The rating reflects Aspen's excellent capitalisation and prospective operating performance, its business position and importance to the Aspen group of companies in terms of operational and financial management. Offsetting factors include the company's high net retention--approximately 90% of premiums--and uncertainty over exact plans to grow third-party business over the medium term. Excellent capitalisation--On a risk adjusted basis, Aspen has an excellent level of capitalisation, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the A.M. Best model. The Aspen group of companies continues to look at potential expansion, which has been factored into A.M. Best's projections. Excellent prospective operating performance-- Aspen's operating performance is excellent benefiting from a 16% 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). of a book of business--largely property and casualty reinsurance--with an excellent proven record from Aspen Insurance UK Limited (Aspen Re), currently rated A (Excellent). However, overall profits will be lower as original expectations were based on a higher than 16% quota share of Aspen Re. Excellent business position--A.M. Best expects year-end 2003 gross premium of approximately 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. 230 million. In addition to the 16 % quota share of Aspen Re, the company also writes a small book of third party business, amounting to approximately USD 25 million of premium in 2003 (10% of total premium). A.M. Best does not expect the proportion of this portfolio to increase in the short term. High net retention--Aspen has in place a 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. programme that provides high level protection with a net retention of USD 50 million. This high level of retained risk is reflected in A.M. Best's prospective capital adequacy. A.M. Best is mindful mind·ful adj. Attentive; heedful: always mindful of family responsibilities. See Synonyms at careful. mind that Aspen's book is written largely on a gross basis, although the company does benefit from certain layers of the Aspen Re retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. programme. Expectations: -- Future expansion and funding remain consistent with the plans outlined to A.M. Best to date. 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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