A.M. Best Affirms Rating of Olympus Reinsurance 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
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 Olympus 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 Ltd. (Olympus) (Hamilton, Bermuda), removing the rating from under review and assigning it a stable outlook. Additionally, A.M. Best has assigned an issuer credit rating of "a-" to Olympus. The rating outlook is stable.
This rating action follows A.M. Best's review of both Olympus' September 30, 2004, results, including the impact of hurricane Jeanne This article deals with the 2004 Hurricane Jeanne. For information on other storms of the same name, see Tropical Storm Jeanne (disambiguation).
Hurricane Jeanne was the tenth named storm, the seventh hurricane, and the fifth major hurricane of the 2004 Atlantic hurricane season. , along with a revised and implemented plan by Olympus to maintain a stable premium volume throughout the remainder of 2004. For 2005, Olympus' premium plan is expected to remain on par with 2004 and will be managed by Olympus through its ability to adjust property business assumptions from Folksamerica Reinsurance Company (New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY). The revised premium plan meets A.M. Best's expectations for supporting the company's current financial strength rating. Once fully implemented, Olympus' plan to maintain premium writings at the present level is expected to produce a capital base able to withstand multiple property catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). loss scenarios and remain well within the "Excellent" range.
Olympus was placed under review with negative implications following deterioration de·te·ri·o·ra·tion
The process or condition of becoming worse. in the company's risk-adjusted capital position due to estimated losses incurred from hurricanes Charley, Frances and Ivan. Without management's revised plan to manage premium production, Olympus was exposed to further negative impact from potential unknown catastrophes. A.M. Best will continue to monitor the capital strength and premium growth of Olympus.
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