A.M. Best Affirms Rating of Societa Cattolica di Assicurazione Coop. a R. L.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 Societa Cattolica di Assicurazione Coop. a R. L. (Cattolica) (Italy). The rating outlook remains stable. The rating reflects Cattolica's prospective excellent risk-adjusted capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper , excellent operating performance and distinctive business position in the Italian market. Cattolica's strong premium growth (anticipated five-year average to year-end 2004 is more than 30%) has placed consolidated risk-adjusted capitalisation under pressure. However, capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. associated with this growth are mitigated by the company's stable account of lower volatility business (predominantly personal lines). A.M. Best also anticipates the premium growth will slow to approximately 10% in 2005, further alleviating pressure on risk-adjusted capitalisation. Cattolica is likely to continue recent significant improvements in profitability, with a stable double-digit return on capital anticipated over the next three years. Life business is likely to continue to make a substantial contribution to overall profitability, with performance enhanced as a result of a reduction in the company's average minimum guarantee for traditional life products. Improvements in non-life technical performance are also likely due to the re-underwriting of the poorly performing motor account written by Cattolica's subsidiary, Il Duomo duo·mo n. pl. duo·mos A cathedral, especially one in Italy. [Italian; see dome.] Noun 1. Assicurazioni e Riassicurazioni S.p.A., using the parent company's proven driver-customised tariff system (Duomo's motor business is likely to represent approximately 25% of Cattolica's non-life net premium in 2004). In A.M. Best's opinion the company's business profile is excellent, supported by its balanced portfolio, extensive bancassurance Bancassurance A French term referring to the selling of insurance through a bank's established distribution channels. Notes: The result is a bank that can offer banking, insurance, lending, and investment products to a customer. and tied agent network and diversified diversified (di·verˑ·s client base. 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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