A.M. Best Affirms Rating of SCHWARZMEER UND OSTSEE Versicherungs-Aktiengesellschaft SOVAG; Assigns Issuer Credit Rating.OLDWICK, NEW JERSEY Oldwick is an unincorporated area within Tewksbury Township in Hunterdon County, New Jersey, United States. The area is served as United States Postal Service ZIP Code 08858. As of the United States 2000 Census, the population for ZIP Code Tabulation Area 08858 was 177. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and assigned an issuer credit rating of "bbb" to 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 outlook for both ratings is stable. The ratings reflect A.M. Best's expectations of a good prospective operating performance in 2006 and 2007 (of approximately 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. 7 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. 8.8 million) before tax and allocation to equalisation reserve), mainly driven by Sovag's improved underwriting, especially in the personal lines business where the company has a mixed track record. Pre-tax earnings of EUR 12.3 million (USD 15.5 million) in 2005 were--to a large extent--positively impacted by significant run-off profits of Sovag's MAT portfolio (due to prudent reserving in prior years). Sovag's risk-adjusted capitalisation is expected to remain excellent in the next two years through the retention of earnings and increases in the equalisation reserve. A partially offsetting factor is the recent reserve deficiencies in some of Sovag's lines of business, such as accident and motor, although the overall run off of previous years' reserves was positive in 2005. A.M. Best expects Sovag to stabilise its claims reserves following an improvement in its reserving methodology. Sovag is a specialist insurer for risks relating to the Russian Federation and the Commonwealth of Independent States Commonwealth of Independent States (CIS), community of independent nations established by a treaty signed at Minsk, Belarus, on Dec. 8, 1991, by the heads of state of Russia, Belarus, and Ukraine. Between Dec. 8 and Dec. (CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S ). The company is expected to continue to focus on its traditional business (marine and property 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. ) while opportunistically expanding into other business lines, such as property insurance for immigrants from Russia or personal accident insurance in Germany. However, A. M. Best does not expect this business to be a large part of Sovag's portfolio. For Best's Ratings, 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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