A.M. Best Affirms Rating of Sunderland Marine Mutual Insurance Company Limited; Assigns Issuer Credit Rating.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Sunderland Marine Mutual Insurance Company Limited (SMMI SMMI Salesian Missionaries of Mary Immaculate SMMI Single Man Machine Interface SMMI Synchronous Main Memory Interface ) and assigned an issuer credit rating of "a-". The outlook for both ratings is stable. In A.M. Best's opinion, SMMI's risk-adjusted capitalisation remains excellent and sufficient to support the company's future anticipated business volume. SMMI's retained surplus in 2005 increased free reserves Free reserves Excess reserves minus member bank borrowings at the Fed. by 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. 8.5 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. 16.2 million) to GBP 43.8 million (USD 83.2 million). A.M. Best believes this growth will continue in 2006, bringing total free reserves to approximately GBP 51 million (USD 96.9 million) at year-end. A.M. Best anticipates strong earnings from SMMI in 2006, although further ahead, softening in the marine market is likely to affect performance. SMMI is likely to produce a combined ratio near 90% and a post tax result of approximately GBP 9 million (USD 17.1 million) for 2006 before charging goodwill and other associated costs relating to the acquisition of its management company. After charging these costs, the anticipated addition to free reserves from retained surplus is GBP 7 million (USD 13.3 million), down from GBP 9 million (USD 17.1 million) in 2005, resulting from a continuation of good claims experience and firm rates. A.M. Best believes that SMMI maintains a strong business profile in its niche sectors, which comprise 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/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. . The company writes business through its network of international branches, giving it a geographically well-diversified portfolio Well-diversified portfolio A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been of business. SMMI further enhances its business profile through the use of its technical expertise and, in respect of aquaculture business, its in-house risk manager, Aquaculture Risk Management Company. 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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