A.M. Best Affirms Rating of SCHWARZMEER UND OSTEE Versicherungs-Aktiengesellschaft SOVAG.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) of SCHWARZMEER UND UND University of North Dakota UND University of Notre Dame UND University of Natal-Durban (South Africa) UND Urgency of Need Designator UND Union Nationale et Démocratique OSTSEE Versicherungs-Aktiengesellschaft SOVAG (Sovag), (Germany). The rating outlook is stable. The rating reflects A.M. Best's expectations of an improving underwriting performance in 2005 with a combined ratio of approximately 98%, following unsatisfactory results in 2004. The company achieved a return on premiums of 4.2% and a combined ratio of 108% as the establishment of incurred but not reported Incurred but not reported (IBNR) is a term in common use in general insurance. When a policy of general insurance is written it will typically cover a 12 month period from inception of the policy. reserves for personal accident business and an adverse development in hull negatively impacted 2004 after tax profit. Sovag's excellent risk-adjusted capitalisation will further grow through 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. and an increasing level of equalisation Noun 1. equalisation - the act of making equal or uniform equalization, leveling human action, human activity, act, deed - something that people do or cause to happen provisions in 2005. Sovag writes primary insurance and 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. , focusing on business relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Russia and the CIS countries, a niche in which it has established itself as a specialist insurer. A.M. Best expects Sovag to compensate for the decrease in the traditional transport business (due to cancellation of specific lines, e.g., marine hull and London aviation, and softening rates) and stagnating motor business by prudently underwriting property and new lines of business such as personal accident and medical travel insurance, thus improving its risk diversification. For Best's Ratings, 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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