A.M. Best Affirms Rating of Rembrandt Insurance Company, Ltd.; Assigns Issuer Credit Rating.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 (Excellent) and assigned an issuer credit rating of "a" to Rembrandt Insurance Company, Ltd. (Bermuda), a captive operation of Vitol Holding B.V (Rotterdam), a global oil trading company. The outlook for both ratings is stable. The ratings reflect Rembrandt's strong risk-adjusted capitalisation and solid financial performance, as well as its business concentration on the Vitol group's risks. A.M. Best believes Rembrandt is likely to maintain strong risk-adjusted capitalisation supported by low net exposure after taking account of its comprehensive 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. programme placed with secure-rated companies. Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. are likely to increase at a lower rate of approximately 6% over the next two years (compared to 36% in 2004) as dividends are expected to be paid from 2005 onwards on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. Adv. 1. . A.M. Best expects robust financial performance over the next two years as Rembrandt's past excellent 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 is likely to be maintained and will continue to be the main driver for pre-tax profits. The excellent combined ratio of 43.6% in 2004 is forecast to further improve to approximately 37% by 2006 due the increase in net claims reserves expected. Rembrandt is likely to remain focused on underwriting the Vitol group's risks, mainly insuring marine cargo and charterers' liability risks. A.M. Best believes diversification into other lines of business or into third-party risks is unlikely to be significant in terms of premium volume over the next two years. 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 http://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 http://www.ambest.com. |
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