A.M. Best Affirms Rating of Island Heritage Insurance Company Ltd.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Island Heritage Insurance Company, Ltd. (Island Heritage) (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. ). The rating outlook is stable. The rating reflects Island Heritage's excellent capitalization, favorable operating results and continued growth in the Caribbean market. These positive attributes are supported by the company's solid 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. results and consistent investment income. Island Heritage's profitable operating results are attributable to its extensive knowledge of each island and control of aggregate exposures. In addition, the company maintains an efficient 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. program, which minimizes catastrophic losses. Partially offsetting these positive factors are Island Heritage's geographic concentration, exposure to hurricane events, high dependency on reinsurance and slightly elevated expense ratio. During fiscal year 2006, Island Heritage incurred net hurricane-related losses of $1.6 million from Hurricane Wilma Hurricane Wilma was the most intense hurricane ever recorded in the Atlantic basin. Exceeding the 21 storms of the 1933 season, Wilma was the twenty-second storm (including the subtropical storm discovered in reanalysis), thirteenth hurricane, sixth major hurricane, and fourth and $2.2 million net residual losses 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. . In addition, Island Heritage's expense ratio is slightly elevated due to the result of additional staff, a new computer system, expanded office space and an overall increase in reinsurance costs affecting the Caribbean market. 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 and A.M. Best groups, please visit 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 www.ambest.com. |
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