A.M. Best Affirms Rating of Lloyd's Syndicate 958.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 Best's Syndicate Rating of A (Excellent) and the issuer credit rating of "a+" of Lloyd's Syndicate 958 (United Kingdom), which is managed by Omega 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. Agents Limited (OUAL). The outlook for both ratings is stable. The ratings reflect syndicate 958's excellent prospective underwriting performance and strong profile in certain specialist markets as well as the financial strength of the Lloyd's market--currently rated A (Excellent)--which underpins the security of all Lloyd's syndicates. A partially offsetting factor is the pricing pressure that is likely to develop in 2005 and 2006 for the lines written by syndicate 958. The rating is based on A.M. Best's specific syndicate criteria. (See A.M. Best's Rating 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. Methodology for Lloyd's Syndicates at http://europe.ambest.com/lloydsmethodology.pdf). A.M. Best believes that syndicate 958's strict underwriting approach, conservative reserving policy and cautious approach to 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. are likely to lead to a continuation of its excellent long-term performance record. A profit of approximately 13% of capacity is anticipated for both the 2002 and 2003 open years, in line with syndicate 958's latest forecasts (Quarterly Monitoring Return at September 2004). In 2004, catastrophes in the second half of the year are expected to have only a marginal impact on the syndicate, although A.M. Best forecasts a somewhat lower profit than anticipated for the previous two years. A.M. Best believes that the syndicate is likely to continue the conservative reserving practices that have led to prior year reserve releases in each of the last five closed years. An increasingly competitive environment is likely to put pressure on rates and terms in 2005 and 2006 for many of the classes written by syndicate 958. However, the syndicate is expected to scale back on underwriting once conditions deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. as evidenced by action taken in the last down cycle. Capacity increased by almost 50% to GBP GBP In currencies, this is the abbreviation for the British Pound. 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. 225 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. 436 million) for the 2004 year of account but will remain unchanged for 2005. Syndicate 958 has an excellent business position, writing a low volatility and well diversified property account, mainly emanating from the US (more than 50% of gross premiums anticipated in 2005). However, A.M. Best believes the syndicate is likely to be successful in its plans to develop similar property business from continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. (over 20% of gross premiums anticipated in 2005). The split in gross premiums in 2004 between direct insurance and reinsurance is likely to be approximately 60:40, and this split is unlikely to change significantly in 2005. 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. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion