A.M. Best Affirms Rating of IPCRe.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 7, 2002 A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of IPC (1) (InterProcess Communication) The exchange of data between one program and another either within the same computer or over a network. It implies a protocol that guarantees a response to a request. Holdings' (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). : 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 ) 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. subsidiaries, IPCRe Limited (Bermuda) and IPCRe Europe Limited (Ireland). The outlook for the rating is stable. The rating reflects IPCRe's strong capital position and well established market presence within the property catastrophe reinsurance market. Further supporting the rating is IPCRe's highly experienced management team, prudent risk management strategies and customer-oriented focus, which have fostered long-term client relationships. The rating also considers 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 (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ). Despite volatility in operating performance stemming from a very high degree of catastrophic activity from 1998 through 2001, IPCRe is well-positioned with a globally diversified book of business to participate in the hardening property catastrophe reinsurance market. To minimize impacts from catastrophic events, IPCRe 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. Offsetting these positive rating factors are the competitive pressures in recent years in the property catastrophe reinsurance market and the group's concentrated risk profile, which adversely impacted operating performance. However, IPCRe's balance sheet is supported by an investment portfolio with over $1.3 billion of assets that is 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 . IPCRe consistently records strong operating cash flows, which supplements the availability of a $150 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 enhances its financial flexibility. In December 2001, this flexibility was evidenced by the ability to raise $546.9 million in additional capital through public and private offerings. A.M. Best believes IPCRe has demonstrated ability to withstand the inherent volatility associated with the business risks and competitive pressures of the property catastrophe reinsurance market. 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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