A.M. Best Affirms Ratings of Ariel Reinsurance Company Ltd. and Ariel Holdings, Ltd.; Removes From Under Review.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 (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) 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 "a-" of Ariel 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 Ltd. (Ariel Re). Concurrently, A.M. Best has affirmed the ICR of "bbb-" of Ariel Holdings, Ltd. (Ariel) (both of Hamilton, Bermuda). All ratings have been removed from under review with negative implications and assigned a stable outlook. These rating actions follow the announcement that Ariel's offer has been declared wholly unconditional with respect to Atrium 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. plc (Atrium) (United Kingdom), which owns the managing agent that operates Lloyd's Syndicates 570 and 609 (United Kingdom). The affirmation of the ratings reflects Ariel's strong risk-adjusted capital position now that permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. has been secured. In addition, Atrium brings a more seasoned and diverse book of business, as well as broader market access and greater geographic diversification to Ariel. Both syndicates 570 and 609 have a solid track record of strong performance. Atrium will be a core business within the overall scope of Ariel's corporate strategy. This acquisition is part of Ariel's long-term plan to slowly diversify the organization into different lines of business. Partially offsetting these positive rating factors is the market has entered the early stage of its softening period. Ariel's management will need to effectively manage the challenges of the soft market dynamics while concentrating on the integration specifics with regards to Atrium. 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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