A.M. Best Affirms Rating of Primary Insurance Company Limited; Assigns Issuer Credit Rating.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and assigned an issuer credit rating of "bbb" to Primary Insurance Company Limited (PICL PICL - Language on Ncube or iPSC machines? ) (Ireland). The outlook for both ratings is stable. PICL's risk-adjusted capitalisation has been maintained at a level commensurate with the current rating, benefiting from a series of management actions including issuance of 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. 10 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. 12 million) of subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". in January 2006 and placement of a retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a 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. contract on business written during 2005. These actions offset the pressures placed on PICL's capitalisation by the very strong net premium growth since the company's inception (approximately 40% anticipated compound growth in the three years to 2005). A.M. Best expects PICL's risk-adjusted capitalisation to be further enhanced during 2006 due to an anticipated reduction of 25% in net premiums written. A.M. Best expects PICL to improve its combined ratio during 2006 to approximately 100% (down from approximately 105% anticipated in 2005) due mainly to the company's concentration on its accident and health portfolio. A.M. Best anticipates a modest profit after tax of approximately EUR 250,000 (USD 296,000) in 2005 factoring losses incurred from the January 2005 U.K. floods and a significant December 2005 property claim. A.M. Best believes these losses are partially offset by PICL's stable anticipated investment return of approximately 3.5% at year-end 2005, with a similar return expected in 2006. A.M. Best believes that PICL benefits from a niche (albeit modest) business profile in the U.K. and Irish markets, reflecting the production of all its business through internal channels of its ultimate parent, Primary Group Limited, an insurance distribution specialist. 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. |
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