A.M. Best Affirms Rating of Sagicor General Insurance Inc.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) of Sagicor General Insurance Inc. (Sagicor General) (Bridgetown, Barbados). The rating outlook is stable. The rating reflects Sagicor General's solid risk-adjusted capitalization, profitable operating performance, prudent 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. leverage and vast market presence in the Caribbean. Sagicor General is one of the largest property/casualty insurers in Barbados with a presence that extends into Dominica, St. Lucia, St. Vincent and Trinidad and Tobago Trinidad and Tobago (trĭn`ĭdăd, təbā`gō), officially Republic of Trinidad and Tobago, republic (2005 est. pop. 1,088,000), 1,980 sq mi (5,129 sq km), West Indies. The capital is Port of Spain. . A disciplined underwriting approach and appropriate risk pricing have enabled the company to achieve consistently favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. underwriting results. As a Caribbean writer, Sagicor General is exposed to frequent and severe weather-related events; however, the company mitigates this exposure through a sound 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. program, territorial diversification and appropriate pricing of its products. In addition, Sagicor General benefits from being a member company of Sagicor Financial Corporation, one of the largest financial service organizations in the Caribbean. Partially offsetting these positive rating factors are the increased frequency of hurricane activities in the region and the increasingly competitive insurance environment in the region. Increasing hurricane activity represents significant risk exposure to Sagicor General and other insurers operating in the Caribbean, as evidenced by losses the company suffered in the Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. from Hurricane Ivan This article is about the Atlantic hurricane of 2004. For other storms of the same name, see Tropical Storm Ivan (disambiguation). Hurricane Ivan was the strongest hurricane of the 2004 Atlantic hurricane season. . To mitigate future losses from similar events, Sagicor General purchased additional catastrophe reinsurance protection and lowered net retention of its catastrophe program. Current reinsurance protection and capitalization is fully supportive of Sagicor General's rating. Furthermore, Sagicor General operates in a challenging Caribbean insurance market, in which competition among insurers has become increasingly competitive to gain market share. 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 www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc. 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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