A.M. Best Affirms Rating of Island Heritage Insurance Company Ltd.; Removes Rating from Under Review.OLDWICK, N.J. -- 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 Island Heritage Insurance Company Ltd. (Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. ) and has removed the rating from under review and assigned it a stable outlook. This rating action follows A.M. Best's review of Island Heritage's range of probable losses emanating from Hurricane Ivan This article is about the Atlantic hurricane of 2004. For other storms of the same name, see Tropical Storm Ivan (disambiguation). Hurricane Ivan was the strongest hurricane of the 2004 Atlantic hurricane season. and the impact on its capital in conjunction with the presentation of a formal recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. plan. The recapitalization plan anticipates the raising of $8 million through a rights offering to existing shareholders. Major shareholders representing 89% of the company's ownership have indicated full participation in the offering, with some major shareholders also indicating a willingness to increase their share allotments should minority shareholders fail to fully participate. A.M. Best expects the capital transaction to be completed within the next two to three weeks. Island Heritage's recapitalization plan meets A.M. Best's capital strengthening expectations, and it fully supports the current financial strength rating. Island Heritage's financial strength rating was placed under review on September 15, 2004, due to the uncertainty surrounding the ultimate loss exposure from Hurricane Ivan and its impact on the capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of the company. For 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. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, 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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