A.M. Best Affirms Ratings of Central Reinsurance Corporation.OLDWICK, NEW JERSEY Oldwick is an unincorporated area within Tewksbury Township in Hunterdon County, New Jersey, United States. The area is served as United States Postal Service ZIP Code 08858. As of the United States 2000 Census, the population for ZIP Code Tabulation Area 08858 was 177. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Central 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. Corporation (Central Re) (Taiwan). The outlook for both ratings is stable. The affirmation of the ratings reflects Central Re's strengthened risk-based capitalization, strong domestic market profile and stable operating performance. The ratings also factor the support from Central Re's shareholders and the prospective profitable growth in business. Following a series of capital injections in recent years, Central Re has made a remarkable improvement in capitalization, with the capital and surplus reaching NTD NTD Neural tube defect, see there 6.38 billion (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. 200 million). The risk-based capitalization, as measured by Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ), has demonstrated the strengthened capitalization. Central Re has a long established relationship with domestic insurers. The company has successfully demonstrated its strong market profile by maintaining its preferred status in the domestic market after the revocation of the Central Reinsurance Corporation Act in 2002. In 2005, Central Re had about a 22% non-life market share in Taiwan. The long established client relationship and the reciprocal 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. strategy have played a key role in maintaining the current market position. The strong domestic premium income has provided a solid foundation for Central Re to explore opportunities in regional markets for continuous growth and development. Throughout the past five years, Central Re has maintained a profitable and stable operation, with the combined ratio falling within the 95% to 97% level. Given that Taiwan is a catastrophe-prone country, Central Re's stable and consistent operating performance has demonstrated its prudent underwriting controls and risk management practices. In addition, A.M. Best also recognizes the company's continued efforts in enterprise risk management (ERM (Enterprise Relationship Management) An umbrella term with many shades of meaning over the years. It may refer to the management of information from any or all of an organization's customers, suppliers, business partners and employees. ) to create a more sustainable advantage for the operation. Offsetting rating factors include the competitive domestic market condition, relatively high underwriting leverage and increasing aggregate risk exposure. Following the entry of foreign participants, the domestic primary market has trended toward stronger capacity and higher retention. The fierce pricing competition persists. These factors translate into a lower premium growth for Central Re and accelerate the potential for more prospective volatile results. Compared with regional peers, Central Re has a relatively high net premium leverage ratio, standing at 1.34 times. As a domestic reinsurer focusing mainly on Taiwan, the company's aggregate risk exposure will continue to increase with larger premium volume, and A.M. Best remains cautious about the steady increase in aggregate risk exposure. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the intensifying competition from the regional reinsurers, whose capitalization has also been increased in recent years, shall continue to pose challenges to Central Re going forward. 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion