A.M. Best Affirms Rating of UIA --Insurance-- Limited.Business Editors 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 UIA UIA Universidad Iberoamericana (México) UIA Union of International Associations UIA United Iraqi Alliance UIA University of Antwerp UIA Union Internationale des Avocats (Insurance) Limited, United Kingdom. The affirmation is based on the company's excellent level of surplus and the niche position it has developed in the U.K. household insurance market. The implementation of a diversification strategy is also viewed positively. Offsetting factors include the volatility associated with the company's high exposure to equities and limited financial flexibility. Excellent surplus position maintained--At the end of 2001, 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 remained excellent and supportive of the current rating level according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. A.M. Best's risk-adjusted capital model. A.M. Best believes the company has sufficient capacity to expand in line with its business plan. Financial flexibility remains restricted, however, due to the company's mutual status. Niche business position--The company's core business segment continues to be U.K. household insurance, which accounted for 96.3% of net premiums (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. 22.3 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. 33.4 million)) in 2001. UIA will continue to benefit from its solid, long-standing relationship with UNISON unison, in music, tones identical in pitch produced by two or more parts or voices. In popular usage a vocal composition is said to be sung in unison even though some of the voices are separated from others by the interval of an octave. , the U.K.'s largest trade union. UIA has provided insurance products to UNISON members for over 100 years and maintains a very high (90%) member retention. UIA acquired Uniservice--a U.K. household provider to a number of small trade unions--in 2000, which contributed GBP 5.0 million (USD 7.5 million) to total gross premiums in 2001. The company is actively looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. additional acquisitions, and A.M. Best views the plans for diversification as positive. Volatile investment portfolio--The company's high exposure to equities (64% in 2001) led to decreased investment returns. In 2001, the level of unrealised loss was GBP 3.6 million (USD 5.4 million) compared with GBP 5.1 million in 2000 (USD 7.6 million), and further unrealised losses are expected in 2002. Expectations: - UIA will maintain a level of risk-based capital supportive of the current rating level. - U.K. household business will remain core, and UIA will continue to be the main insurance provider to UNISON. - The company will continue to look for acquisitions to further diversify its portfolio whilst continuing to maintain high service levels. Growth is forecast to be moderate, with gross premiums written increasing to approximately GBP 35.0 million (USD 52.5 million) by 2004. 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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