A.M. Best Affirms Ratings of CastlePoint Holdings Ltd; Removes From Under Review.OLDWICK, N.J. -- A.M. Best Co. has affirmed 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 issuer credit ratings (ICR) of "a-" of CastlePoint Insurance Company (CPIC CPIC Canadian Police Information Centre CPIC China Pacific Insurance (Group) Co. Ltd. CPIC Capital Planning & Investment Control CPIC Combined Press Information Center CPIC Coalition Press Information Center ) (New York) and CastlePoint 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, Limited (CPRe) (Bermuda). A.M. Best has also affirmed the ICR of "bbb-" of CastlePoint Holdings, Ltd (CastlePoint) (Bermuda) [NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CPHL CPHL Central Public Health Laboratory (London, UK) CPHL Central Professional Hockey League CPHL Calgary Puck Hockey League ]. All the above ratings have been removed from under review with negative implications and assigned a stable outlook. A.M. Best has completed its due diligence of the operational and financial details related to the June 22, 2007 announcement that CastlePoint had entered into a risk sharing agreement with AequiCap Insurance Company (AIC AIC Association des Infermières Canadiennes. ) and Aequicap Program Administrators (APA (All Points Addressable) Refers to an array (bitmapped screen, matrix, etc.) in which all bits or cells can be individually manipulated. APA - Application Portability Architecture ), whereby APA would produce workers' compensation and commercial automobile business of which CPIC and CPRe would participate and retain risk. Although A.M. Best remains concerned with the relative size of this agreement, as well as the historical and prospective loss experience of this business, CastlePoint and its entities have demonstrated that an acceptable level of due diligence had been performed prior to entering this agreement. Additionally, it appears that underwriting, claims, operational controls and oversight by CastlePoint will provide for early intervention, if necessary. Moreover, the group's current risk-adjusted capitalization remains adequate at current rating levels, and projected financial results are largely consistent with the business plan provided to A.M. Best from CastlePoint. A.M. Best will monitor the performance of this transaction, as well as the risk profile of CastlePoint should it enter into any additional transactions of materiality. 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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