A.M. Best Affirms Rating of EIG-Ansvar Limited, New Zealand.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of EIG-Ansvar Limited (EIG-Ansvar) (New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. ). The rating outlook is stable. The rating reflects EIG-Ansvar's satisfactory operating performance, excellent risk-adjusted capitalization, liquid investment portfolio and well-established local presence in the target segment. A.M. Best considers the company a strategically important subsidiary of its ultimate parent, Ecclesiastical Insurance  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Office Plc. (United Kingdom). EIG-Ansvar, as a niche player in the segment of religious and community groups, has consistently maintained a stable underwriting portfolio with a profitable position in New Zealand. The company's after-tax net profit has significantly improved to NZD NZD In currencies, this is the abbreviation for the New Zealand 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. $0.96 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. $0.63 million) in 2003 from NZD $0.43 million (USD $ 0.23 million) in 2002. The company has maintained its loss ratio at an average of 54% with an overall operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: persistently below 90% over the past 5 years. EIG-Ansvar also maintains strong liquidity within its investment portfolio. As of December 31, 2003, cash and fixed income instruments Fixed income instruments Assets that pay a fixed dollar amount, such as bonds and preferred stock. accounted for about 57.5% of the company's total assets. The Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. , which measures capitalization on a risk-adjusted basis, demonstrates that the company is strongly capitalized. The company's capital and surplus increased by 17.5% in 2003 as compared to 8.6% in 2002. Going forward, an increase in retained surplus, along with a moderate premium growth approach, will likely further strengthen the company's capitalization in the short term. These positive factors are partially offset by EIG-Ansvar's moderate capital size on an absolute basis relative to other market participants, its limited long-term growth prospects and the intense market competition. In view of the nature of its business concentration, the company's potential growth is limited over the long term. Furthermore, the company is faced with strong competition to maintain its market position, especially from its well-established international peers. 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 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. 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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