A.M. Best Affirms Ratings of Catlin Insurance Company Limited, Catlin Insurance Company -UK- Ltd and Catlin Group Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a" of Catlin Insurance Company Limited (CICL CICL Central Illinois Collegiate League (baseball) CICL Cast Iron Cement Lined (pipe) CICL cast iron concrete lined (pipe) ) (Bermuda) and its subsidiary Catlin Insurance Company (UK) Ltd (Catlin UK). At the same time, A.M. Best has affirmed the ICR of "bbb" of Catlin Group Limited (CGL See Carrier Grade Linux. ) (Bermuda), CICL's ultimate parent company. The outlook for all ratings remains stable. A.M. Best anticipates that CICL's consolidated risk-adjusted capitalisation will remain excellent at year-end 2005. The company is expected to continue to generate additional capital internally, increasing consolidated capital and surplus to over 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. 1 billion by year-end 2005 (up from USD 891 million at year-end 2004). This increase in capital will be sufficient to offset anticipated growth in gross premiums of approximately 50% to over USD 650 million during the same period. At year-end 2004, in support of CGL's 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. at Lloyd's through Lloyd's Syndicate 2003, CICL had assets in trust of USD 237 million and guaranteed a letter of credit for USD 225 million. A.M. Best has excluded the assets in trust and total value of the letter of credit from its risk-adjusted analysis of CICL's capitalisation. A.M. Best believes that CICL's technical performance is likely to remain excellent in 2005 and 2006. Despite exceptionally high hurricane activity in 2004, which contributed USD 18.8 million to CICL's net incurred losses and 5.7% to the loss ratio, the company achieved a combined ratio of 78.6% for the year. A.M. Best anticipates that the company's operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. ratio is likely to remain competitive in 2005 and 2006 at marginally over 20%, although increasing from 18.8% in 2004 as the company builds resources in Bermuda and London. The combined ratio is forecast to stay below 80% for both years, assuming a return to normal loss experience. 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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