A.M. Best Affirms Ratings of Caisse Centrale de Reassurance.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) and the issuer credit rating of "aa" of Caisse Centrale de Reassurance (CCR 1. CCR - condition code register. 2. CCR - (Database) concurrency control and recovery. ) (France). The outlook for both ratings remains stable. The ratings reflect CCR's unique position as the only French 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. providing unlimited cover for catastrophic perils, nuclear and terrorist risks. A.M. Best believes that the company will continue to benefit from the explicit support of the French State (CCR's shareholder) in the form of a stop-loss in the medium term despite the ongoing review of the current natural catastrophe insurance cover. A.M. Best expects CCR to maintain its superior risk-adjusted capitalisation as the company's aggregate catastrophe losses are capped at an agreed level through the stop-loss agreement with the French State. Despite the increasing number of natural catastrophes in recent years, CCR is continuing to build up its equalisation Noun 1. equalisation - the act of making equal or uniform equalization, leveling human action, human activity, act, deed - something that people do or cause to happen reserve (EUR EUR In currencies, this is the abbreviation for the Euro. 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. 680 million (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. 858 million) in 2005); however, this also implies a higher risk exposure. Despite CCR's efforts to restructure its open market book of business, technical results remain disappointing with a slight deterioration in the combined ratio in 2005 (106% compared with 104% in 2004). A.M. Best does not expect a significant improvement in 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. results in 2006 as CCR has limited influence on terms and conditions. As a consequence, A.M. Best believes that CCR may find it difficult to achieve a target return on equity of 8% by 2007. A.M. Best believes that underwriting results of the State-backed business (currently EUR 760 million (USD 960 million) of premiums) are likely to remain volatile given the nature of risks CCR is reinsuring and its varying annual aggregate exposures. However, this book of business has remained very profitable in the last two years, and A.M. Best also expects positive results in 2006. 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. 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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