A.M. Best Affirms Ratings of B.E.S.T. Reinsurance.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and the issuer credit rating of "bbb" of B.E.S.T. 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. (BEST Re) (Tunisia). The outlook on both ratings remains stable. The ratings reflect BEST Re's consistently profitable 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 and a diversified spread of business. The ratings also factor the company's good overall risk-adjusted capitalisation, which is partially offset by relatively low reserve levels and weak liquidity due to significant deposits being held with ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. companies. However, A.M. Best recognises that these are used to fund payment of cedants' claims. On a risk-adjusted basis, A.M. Best believes that BEST Re's capital position will remain supportive of the current rating, factoring the company's strategy for strong premium growth over the medium term, provided the 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. 45 million of additional capital expected from an existing shareholder is forthcoming by year-end 2005. A high proportion of assets, however, continues to be held as deposits with cedants, somewhat impairing the quality of capitalisation. BEST Re has initiated a process of the transfer of these funds to local Islamic Banks, although this process is likely to be gradual. A.M. Best recognises that the majority of the business is short-tail proportional treaties, and BEST Re tends to settle claims promptly but is concerned that the ratio of reserves to premium remains low. Prospectively, A.M. Best expects BEST Re to continue to adhere to adhere to verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful 2. its conservative underwriting philosophy, despite its plans for strong growth over the medium term, and envisages an improvement in its operating performance in 2005, with retained profits increasing to approximately USD 6.0-6.5 million (2004--USD 4.5 million). Operating performance remained excellent in 2004 due to BEST Re's focused and disciplined business strategy and despite a net charge of USD 1.7 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the tsunami in December. BEST Re's ability to enhance earnings through investment income remains limited due to investments mainly being held in non-interest bearing securities and cedants' deposits. BEST Re, though domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. in Tunisia, operates as an offshore company, and its premium income is well diversified, both geographically and by class. BEST Re's market profile in each of its chosen markets remains limited by its relatively small size, limiting access to certain lines of business. 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 http://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 http://www.ambest.com. |
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