A.M. Best Affirms Ratings of Arab Reinsurance Company S.A.L.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 B+ (Good) and the issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bbb-" of Arab 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. Company S.A.L. (Arab Re) (Lebanon). The outlook on both ratings remains stable. The ratings reflect Arab Re's strong current and prospective risk-adjusted 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 and good operating performance. An offsetting factor is the company's limited growth prospects. In A.M. Best's view, Arab Re has maintained a strong risk-adjusted capital position in recent years despite growing levels of net premium income. A.M. Best expects Arab Re to preserve its strong capital position in 2009. Arab Re's operating performance declined in 2007 with the company's combined ratio increasing by around 5% to 98%. 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 in 2007 was impacted by two large loss events, including Cyclone Gonu Cyclone Gonu (JTWC designation: 02A, also known as Super Cyclonic Storm Gonu) was the strongest tropical cyclone on record in the Arabian Sea, and tied for the strongest tropical cyclone on record in the northern Indian Ocean. , which amounted to 32% of all paid and outstanding claims. In A.M. Best's view, this demonstrated the strength of Arab Re's outwards reinsurance programme. A.M. Best anticipates much improved results in 2008, with a projected 5% decrease in the combined ratio and a return on equity (ROE) of approximately 14% (ROE of 12% in 2007). In A.M. Best's opinion, Arab Re remains a relatively small company in terms of premium base when compared to global reinsurers operating within the same markets. A.M. Best believes that an increasingly competitive environment in addition to increasing rating requirements in particular territories is going to materially hinder Arab Re's premium expansion plans in 2009. Despite these obstacles, A.M. Best anticipates that Arab Re will continue to grow premium income and improve its market visibility. For 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. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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