A.M. Best Affirms Rating of IPCRe Group.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 15, 2003 A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of IPCRe Group (IPCRe) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : IPCR IPCR International Peace and Conflict Resolution IPCR Inverse Polymerase Chain Reaction IPCR Intellectual Property and Competition Review (Australia) IPCR Institute for Pediatric Clinical Research ) (Hamilton, Bermuda) and its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . The rating outlook is stable. The rating reflects IPCRe's superior risk-adjusted capitalization, excellent historical earnings and well established market presence within the global property catastrophe 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. market. The rating also acknowledges IPCRe's highly experienced management team, prudent risk management strategies and customer-oriented focus. Due to its strong exposure management, the company has withstood volatility in operating performance, stemming from high severity catastrophic activity from 1998 through 2001. More recently, IPCRe's performance has been superior, benefiting from a lack of major catastrophic events, improved reinsurance pricing, tighter contract terms and continued conservative risk management. To minimize impacts from catastrophic events, IPCRe management carefully monitors aggregate accumulations with the maximum allowable exposure in any single geographic zone limited to a preset percentage of capital established by its Board of Directors. This capital-based limits approach diversifies the company's exposure around the world and achieves an optimal spread of risk. The rating also considers the advantages IPCRe derives through strategic relationships with affiliates of its original sponsor and largest shareholder, American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc (AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group ). AIG affiliates provide administrative and back office functions in addition to investment portfolio management services. Partially offsetting these positive rating factors is the increasing availability of reinsurance capacity in the property catastrophe reinsurance market and IPCRe's concentrated risk profile, which may pressure future operating performance. These concerns are mitigated by IPCRe's unencumbered balance sheet, supported by an investment portfolio with over $1.6 billion of invested assets that are conservatively managed to ensure adequate liquidity and preservation of capital Preservation of Capital An investment strategy whose primary goal is to prevent the loss of an investment's total value. Notes: For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at . Furthermore, IPCRe consistently records strong operating cash flows, which supplement the availability of a $200 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and enhance financial flexibility. The financial strength rating of A+ (Superior) has been affirmed for IPCRe Group and the following operating subsidiaries: -- IPCRe Limited -- IPCRe Europe Limited 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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