A.M. Best Affirms Rating of Sunderland Marine Mutual Insurance Company Ltd.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 23, 2004 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Sunderland Marine Mutual Insurance Company Ltd (SMMI SMMI Salesian Missionaries of Mary Immaculate SMMI Single Man Machine Interface SMMI Synchronous Main Memory Interface ) (United Kingdom). The outlook is stable. The rating reflects continuing improvement in the company's risk-adjusted capital position, strong performance and a good specialist business profile. Improving risk-adjusted capital--A.M. Best expects the company to build on the improvement in its 2003 risk-adjusted capitalisation. On a risk-adjusted basis, a substantial anticipated increase in surplus from 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. is expected to offset forecast increases in net premiums and reserves in 2004. In addition, A.M. Best believes that SMMI's capital is strongly protected by its 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, which includes whole account protection (up to a pre established aggregate) and excess of loss cover, which provides protection above the level required for the company's maximum possible loss. The company's programme is placed with reinsurers rated Excellent or above by A.M. Best. Strong performance--A.M. Best believes SMMI will achieve a combined ratio below 95% in 2004 (92.8% in 2003) based on a continuation of favourable underwriting conditions in the company's specialist markets and SMMI's selective underwriting approach. It is anticipated that the company will benefit from profitable business from Harlock Murray Underwriting Ltd (Canada), which has expanded as a result of a new joint venture interest acquired by Salvus Bain (Management) Ltd--SMMI's management company--in Murray Underwriting Ltd (Canada). A.M. Best expects gross written premium from this source to be approximately GBP GBP In currencies, this is the abbreviation for the British Pound. 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. 5 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. 8.9 million) in 2004. Good niche business profile--SMMI has a good leadership profile in certain niche sectors including fishing vessels Customary International Law provides that coastal fishing boats and small boats engaged in trade, as distinguished from seagoing fishing boats and large traders, are immune from attack and seizure during war. This Immunity is lost if fishing vessels take part in the hostilities. , inland and coastal vessels and aquaculture aquaculture, the raising and harvesting of fresh- and saltwater plants and animals. The most economically important form of aquaculture is fish farming, an industry that accounts for an ever increasing share of world fisheries production. . SMMI's account is well diversified on a geographical basis as a result of business written through its branch offices in Australia, New Zealand and North America. The company uses its technical expertise and risk management to develop its business profile and to increase the risk awareness of both its underwriters and insureds. 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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