A.M. Best Affirms Rating of Reinsurance Subsidiaries of Platinum Underwriters Holdings Ltd.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 26, 2004 A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of the 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. subsidiaries of Platinum Underwriters Holdings, Ltd. (Platinum) (NYSE NYSE See: New York Stock Exchange :PTP (1) See peer-to-peer. (2) (Picture Transfer Protocol) An ISO standard for transferring photos from a digital camera to a computer or photo printer. ) (Bermuda). Concurrently, A.M. Best has affirmed the "bbb+" rating of the group's equity security units issued by Platinum Underwriters Finance, Inc. (Delaware) and guaranteed by Platinum. The outlook for all ratings is stable. The rating reflects the group's excellent capitalization and strong operating performance since its inception in late 2002. In 2003, the group reported a combined ratio of 84.7% and increased total capital 13.8% to $1.2 billion. Included in capital is $137.5 million in equity security units which are mandatorily convertible to common stock in 2005. The group, originally formed to assume the reinsurance operations of The St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery Companies, (St. Paul, MN), has no insurance obligations related to business produced prior to 2002. Additionally, Platinum has effectively utilized its "incumbent status" inherited from St. Paul to adhere to adhere to verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful 2. its initial business plan and to establish itself as a multi-line global reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. undertaking casualty, property and marine and finite risks. Platinum's strengths are partially offset by increased competition from both established reinsurers as well as other reinsurance companies formed in the wake of the September 11th attacks On September 11, 2001, in the deadliest case of domestic Terrorism in the history of the United States, a group of 19 terrorists hijacked four U.S. airliners for use as missiles against targets in New York City and Washington, D.C. . This competition, combined with a light catastrophe period, has already resulted in a softening of rates in some of the group's core markets, and could potentially reduce expected returns Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: . The financial strength ratings of A (Excellent) have been affirmed for the following operating subsidiaries of Platinum Underwriters Holdings, Ltd.: -- Platinum Underwriters Reinsurance, Inc. -- Platinum Re (UK) Limited -- Platinum Underwriters Bermuda, Ltd. The following debt rating has been affirmed: Platinum Underwriters Finance, Inc.-- -- "bbb+" rating on $137.5 million in equity security units, due 2005 For current Best's Ratings, independent data and analysis on more than 470 reinsurance companies, please visit http://www3.ambest.com/reinsurance/. For a list of A.M. Best's current debt ratings, please visit http://www3.ambest.com/debtratings/. 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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