A.M. Best Affirms Ratings of American Re Corporation Group.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 20, 2003 A.M. Best Co. has affirmed the financial strength ratings of A+ (Superior) for the member companies of American Re Corporation Group (Princeton, New Jersey
Princeton, New Jersey is located in Mercer County, New Jersey, United States. Princeton University has been sited in the town since 1756. ). Concurrently, A.M. Best has downgraded the senior debt rating of American Re Corporation to "a-" from "a". The outlook for all ratings is stable. The ratings reflect the explicit financial support that has been provided to American Re by its ultimate parent, Munich Re Munich Re AG, in German Münchener Rück AG (ISIN: DE0008430026), is the world's second largest reinsurance company with over 5,000 customers in 160 countries and has its headquarters in Munich, Germany. , as well as American Re's strategic importance to Munich Re, which is sustained by its leading position as a direct professional reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and its improved underwriting performance reported in more recent quarters. However, the current rating is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent A.M. Best's expectation that $300 million of additional unencumbered equity capital will be infused into American Re-Insurance Company by the end of 2003 and that American Re will maintain consolidated statutory risk adjusted-capital commensurate with A.M. Best's Superior rating. As a significant player in the US professional 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. market, American Re has benefited from improved market conditions as reflected by improved earnings. As a result, together with the anticipated capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. , the company is making significant progress in rebuilding its capital base. Notwithstanding this improvement, the company remains exposed to the potential for adverse reserve development relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc accident years 1997 to 2001. Accordingly, should American Re's risk adjusted capital for any reason fall below A. M. Best's expectations, subsequent rating actions may be warranted. The A+ (Superior) financial strength ratings of the following subsidiaries of American Re Corporation Group have been affirmed: -- American Re-Insurance Company -- American Alternative Insurance Corporation -- Princeton Excess & Surplus Lines Insurance Company The senior debt rating has been downgraded to "a-" for the following security: American Re Corporation -- -- $500 million 7.45% senior unsecured notes, due December 15, 2026 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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