A.M. Best Affirms Ratings of Allianz Cornhill Insurance plc.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+ (Superior) and the issuer credit rating of "aa-" of Allianz Cornhill Insurance plc (ACI ACI American Concrete Institute ACI Arch Coal Inc ACI Airports Council International (formerly Airport Associations Coordinating Council) ACI Automobile Club d'Italia ACI American Competitiveness Initiative ) (United Kingdom). The outlook for both ratings remains stable. The ratings reflect ACI's excellent stand-alone risk-adjusted capitalisation, strong operating performance and U.K. business profile, as well as support from ACI's ultimate parent, Allianz AG (Germany). A.M. Best anticipates that ACI will maintain excellent risk-adjusted capitalisation at year-end 2006, taking into account likely future dividend payments and strong investment income. In A.M. Best's opinion, ACI also derives significant financial flexibility from Allianz AG's access to the financial markets. A.M. Best believes ACI's overall earnings are likely to remain strong with a return on premium of between 10%-15% anticipated in 2006, despite a return to normal levels of anticipated tax payments by year-end and continued softening of market rates in the majority of ACI's core business segments. Earnings are expected to be supported by strong 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. performance (2006 anticipated combined ratio of 97%), which is likely to include reserve releases resulting from the company's prudent reserving strategy. A good investment yield of up to 5% is also likely to contribute to strong earnings for the year. In A.M. Best's opinion, ACI has an excellent business profile benefiting from both its strong business position in the United Kingdom (as one of the top ten general insurers by premium volume) and the Allianz brand name. A.M. Best anticipates that gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. will remain relatively stable in 2006 (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. 1.67 billion in 2005 (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. 2.87 billion)) as the current softening of market rates in ACI's core markets are offset by growth within the direct personal lines and specialty segments. For Best's Debt Ratings, all other 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 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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