A.M. Best Affirms Rating of Ocaso, S.A. Seguros y Reaseguros.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+ (Superior) and assigned an issuer credit rating of "aa-" to Ocaso, S.A. Seguros y Reaseguros (Ocaso) (Spain). The outlook for both ratings is stable. The ratings reflect the company's superior risk-based capitalisation, excellent operating performance and excellent business profile. These factors are offset by Ocaso's limited international presence and business diversification. Excellent business profile--Ocaso is one of the leading providers of funeral expenses in Spain with an expanding household, corporate multi-risks and UK household insurance book. The company benefits from a strong brand and an extensive distribution network. Given the limited prospects for growth in the traditional funeral expenses business, A.M. Best believes the gradual increase in home and residential buildings business will help Ocaso retain a significant position in the Spanish insurance market. Despite Ocaso having built up a material life portfolio in recent years, any potential growth is not expected to be material given the low interest rate environment in a market strongly dominated by bancassurance Bancassurance A French term referring to the selling of insurance through a bank's established distribution channels. Notes: The result is a bank that can offer banking, insurance, lending, and investment products to a customer. agreements. Excellent and Stable operating performance--A.M. Best expects the strong positive technical results to continue, mainly driven by a persistently low combined ratio and a gradually maturing life book. Ocaso's cautious 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. philosophy and expense control have consistently led to positive non-life technical results with a combined ratio remaining stable below 90%. Total net profits for 2005 increased for the third consecutive year, reaching EUR EUR In currencies, this is the abbreviation for the Euro. 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. 58.2 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. 73.6 million) compared to EUR 35.6 million ((USD 45.0 million) in 2003, mainly driven by the lower combined ratio and the expanding insurance portfolio. Strong and superior capitalisation--Ocaso's risk-based capitalisation remains superior, having benefited from significant profit retention in recent years. Ocaso continues to cover comfortably the stringent cumulative reserving requirements from the local regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. in respect of old funeral Old Funeral was a black/death metal band from Bergen, Norway. Old Funeral was one of the first bands to form in the Norwegian extreme metal scene, getting its start in 1988. expense business. A.M. Best believes that the company's capital position is capable to absorb the impact from business growth. 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 www.ambest.com/ratings. 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion