A.M. Best Affirms Ratings of Bosna Reosiguranje d.d. Sarajevo (Bosna Re).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+ and the issuer credit rating of "bbb-" to Bosna Reosiguranje d.d. Sarajevo (Bosna Re) (Bosnia and Herzegovina Bosnia and Herzegovina (bŏz`nēə, hĕrtsəgōvē`nə), Serbo-Croatian Bosna i Hercegovina, country (2005 est. pop. 4,025,000), 19,741 sq mi (51,129 sq km), on the Balkan peninsula, S Europe. ). The outlook for both ratings is stable. The ratings of Bosna Re reflect its strong risk-adjusted capitalisation, stabilising 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 dominant domestic business position. A.M. Best believes that Bosna Re's risk-adjusted capitalisation is strong and is supportive of the company's business growth in the next few years. Bosna Re's capital level is well protected by a comprehensive retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. programme, which is placed with companies with secure ratings. Bosna Re's underwriting performance became more stable in 2008 and showed positive results, with a moderate combined ratio of 92.6% and a loss ratio of 59.8% (61.1% in 2007). Going forward, A.M. Best expects less volatility in underwriting performance (which was experienced in past years prior to 2007). However, the newly implemented reserving system is yet to be tested fully. Adoption of International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). also has been completed, which A.M. Best views as a positive step towards consistency in presentation of the results. A.M. Best believes that Bosna Re's overall performance will continue to be positive (BAM Bam (bäm), town (1996 pop. 70,100), Kerman prov., SE Iran, on the intermittent Bam River. Located on the western edge of the Dasht-e Lut, Bam is a trade center in a henna-growing region. Dates and other fruits are also grown; camels are raised. 3 million in 2008) and is likely to be derived from both investment income and underwriting income Underwriting income For an insurance company, the difference between the premiums earned and the costs of settling claims. . A.M. Best is of the opinion that Bosna Re has a strong position in the domestic market, having generated a healthy premium of BAM 48.5 million in 2008. A.M. Best believes that Bosna Re is likely to experience the similar premium volumes in the next two years. The company's insurance portfolio mix is quite limited and mostly dominated by two main traditional types of insurance: motor (36% of 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. ) and property (42% of gross premiums written). A.M. Best does not anticipate any major changes of the portfolio composition in the next two years. For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. 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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