A.M. Best Affirms Rating of West of England.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 3, 2003 A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of the West of England The West of England is a loose term given to the area surrounding the City and County of Bristol, England. It is increasingly used - e.g. by the West of England Partnership - as a synonym for the former Avon (county) area. Ship Owners Mutual Insurance Association (the Club), Luxembourg. The rating outlook is stable. The rating reflects the Club's excellent capitalisation and financial flexibility, prospectively improving operating performance and leading business profile and market position. Excellent capitalisation and financial flexibility--West of England continues to have an excellent level of risk-adjusted capitalisation. The absolute level of the Club's free reserves Free reserves Excess reserves minus member bank borrowings at the Fed. has been under pressure in recent years due to competitive market conditions--soft rate environment and overcapacity--and volatility in the equity markets. However, in the opinion of A.M. Best, the current and forecast level of free reserves is adequate to support the Club's short-medium-term premium growth forecasts. The Club has excellent financial flexibility through its ability to call additional funds from members, should the need arise, and the existence of a 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. 10 million overdraft facility. Prospectively improving operating performance--The withdrawal of fixed premium providers and hardening hardening, in metallurgy, treatment of metals to increase their resistance to penetration. A metal is harder when it has small grains, which result when the metal is cooled rapidly. market conditions should enable the Club to improve its operating performance in the short term. The Club has consistently reported an increase in tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. , and premium growth has resumed its upward trend in the year to February 2002, with gross premiums increasing by 3.4%. Going forward, growth of 20-25% is forecast for 2003-2004 with further, more moderate growth levels in 2004-2005. Management's focus on enhanced 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. discipline and reducing the expense base should result in an improvement in the underlying profitability of the portfolio in addition to operating ratios Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: . Continued favourable development of claims levels and costs and further reserve releases should also boost the bottom line result. A return to profitability is forecast for 2003/04. Maintenance of leading business profile and market position--The Club is a member of the International Group of P&I Clubs and is one of the leaders within this sector, both in terms of tonnage and premium levels. The Club benefits from the provision of high quality service to its members, both in terms of claims and loss prevention via offices in London, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and Greece. Further, its underwriting portfolio is well spread both geographically and by risk type. 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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