A.M. Best Affirms Rating of QBE Re Group - U.S.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 12, 2002 A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of QBE (Query By Example) A method for describing a database query originally developed by IBM for mainframes. A replica of an empty record is displayed and the search conditions are typed in under their respective columns (fields). Re Group - U.S. (QBE) (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 ). This rating applies to QBE 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. Corporation and its reinsurance subsidiary, QBE Insurance QBE Insurance Group Limited ASX: QBE is an Australian based general insurance provider, providing insurance services mainly to the Asia Pacific region, but also America and Europe. It has offices in 44 countries. Corporation (both of Pennsylvania). The rating reflects the group's strong capitalization, solid liquidity position and its strategic role within QBE Insurance Group Limited, one of Australia's largest insurance/reinsurance organizations. These positive rating factors are derived from QBE's diversified risk portfolio, ability to generate business opportunities through its niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. strategy and its solid balance sheet. Additionally, the rating considers QBE Insurance Group Limited's ongoing parental commitment to QBE through various reinsurance protections, a parental guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. of inter-company receivables and capital contributions. During 2001 and 2002, QBE Insurance Group Limited contributed $100 million of capital to QBE, which supports the group's ability to participate in the current favorable market conditions and expand coverage for clients. The group's total policyholders' surplus is now in excess of $250 million. Offsetting these strengths is QBE's poor 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. performance during the last five years as a result of the difficult market conditions of the late 1990s and the high frequency of catastrophe losses. Moreover, there is some uncertainty with respect to QBE's growth in new territories--including Latin America--and specialty classes of business including increased utilization of MGAs. Nonetheless, management remains committed to growing new books of business, on a conservative basis, and has limited catastrophe exposure from a single event to less than 10% of the group's policyholders' surplus. Furthermore, given QBE's improved balance sheet strength resulting from its parental contribution, A.M. Best expects that its increased diversification efforts, enhanced underwriting controls and commitment to pricing adequacy should help return the group's underwriting profitability. Accordingly, the rating outlook is stable. 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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