A.M. Best Affirms Rating of Aspen Insurance UK Limited.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 8, 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 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 UK Limited (Aspen Re), the London-based subsidiary of Aspen Insurance Holdings Limited (AIH AIH American Institute of Homeopathy; artificial insemination by husband. AIH abbr. 1. artificial insemination performed by the husband 2. ). The rating outlook is stable. The rating reflects Aspen Re's superior capitalisation, excellent financial performance and business profile. Offsetting factors include the company's reliance on 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. cover and business concentration. Superior capitalisation--Aspen Re's current and prospective capitalisation is regarded as superior, 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 risk-adjusted capital model. The company benefits from a solid projected surplus in excess 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. 700 million at year-end 2003, supporting any potential expansion plans. Excellent expected financial performance--Aspen Re's current operating performance is largely in line with A.M. Best's expectations. The company's financial performance is expected to remain excellent, with the company 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. to a combined ratio in the region of 75%-80% through 2004 subject to a normal loss experience. Excellent business profile--Aspen Re benefits from an excellent business profile based on a well established book of property (mainly catastrophe and risk excess of loss), casualty and UK commercial lines business transferred from syndicate 2020 at the start of 2003. Aspen Re has also accepted a 7.5% 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 syndicate 2020's overall book of business. The company is expected to experience significant premium growth in 2003 (approximately 250%). High reliance upon retrocession cover--Given the nature of the business written, Aspen Re cedes approximately 30% of gross premium income, leaving it highly dependent upon the pricing and availability of retrocession cover. Aspen Re has secured retrocession cover for 2003 with a number of high quality companies. Business concentration--A.M. Best believes the company's portfolio continues to be dominated by a limited number of specialist lines with property catastrophe and risk excess expected to account for approximately 35% of the whole book in 2003. However, the company has established a new specialty account during 2003 with expected gross premiums of USD 60 million, which is likely to marginally improve overall diversification. Expectations: -- Future expansion and funding remains 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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