A.M. Best Affirms Rating of Munich Reinsurance Company of Canada; Downgrades Rating of Temple Insurance Company.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 1, 2004 A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of Munich 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. Company of Canada (MROC MROC - Miniature Ruggedized Optical Correlator ) (Toronto, Ontario). The rating outlook is stable. The rating of MROC reflects its role as a core subsidiary of its parent company, Munich Re Munich Re AG, in German Münchener Rück AG (ISIN: DE0008430026), is the world's second largest reinsurance company with over 5,000 customers in 160 countries and has its headquarters in Munich, Germany. Group (Germany). The rating also recognizes MROC's importance to the group and its overall integration with the parent. MROC is the Canadian platform for the group and, as such, has achieved prominence as the reinsurance market leader in Canada. Furthermore, the rating reflects its strong capitalization and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating performance, as well as the implicit and explicit support of its parent. Partially offsetting these positive rating factors is the group's unsatisfactory but improving 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. Concurrently A.M. Best has downgraded the financial strength rating to A (Excellent) from A+ (Superior) of its affiliate, Temple Insurance Company (Toronto, Canada). The rating outlook is stable. The rating of Temple acknowledges its strategic role to MROC and the overall Munich Re Group. As such, the company is rated one level below the group. Temple is positioned as a niche insurer for MROC, specializing in primary liability coverages. The rating further reflects Temple's strong capitalization, favorable operating performance and its integration with MROC's management structure, product focus and technical expertise. For current 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. , independent data and analysis on more than 470 reinsurance companies, please visit http://www3.ambest.com/reinsurance/. 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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