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 main 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. for French natural catastrophe and other extreme risks, its superior risk-adjusted capitalization and very strong overall earnings. An offsetting factor remains the unsatisfactory underwriting results of CCR's open market portfolio. CCR continues to have a unique position in its domestic market as the only reinsurer 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 medium term, despite the ongoing review of the current natural catastrophe insurance cover, regarding the structure of the scheme and possible transparency issues, by the French Ministry of Finance. In A.M. Best's opinion, CCR's risk-adjusted capitalisation, which is supported by the stop-loss agreement with the French State, remains superior following a strengthening of 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 reserves (by 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. 432 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. 580] in 2006) and additional retention of earnings. CCR achieved a very strong after tax profit of EUR 628 million (USD 845) in 2006, translating into a return on premium of 53%. Despite the volatility inherent to its State-backed portfolio, CCR has made an overall profit in the last four years. This is likely to continue prospectively in A.M. Best's view. An offsetting factor remains the unsatisfactory underwriting performance of the open market portfolio, comprising 33 % of GWP GWP Global Warming Potential GWP Global Water Partnership GWP Gift With Purchase GWP Guinea-Bissau Peso (currency code: now GNF) GWP German Wirehaired Pointer (dog breed) GWP Gross World Product , where the combined ratio stood at 104% at year-end, and which was significantly worse than the overall results of the 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. market in 2006. In A.M. Best's opinion, the open market portfolio is likely to continue to post underwriting losses in 2007-08. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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