A.M. Best Affirms Ratings of Connaught Insurance Company Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of B+ (Good) and the issuer credit rating of "bbb-" of Connaught Insurance Company Limited (Connaught) (Guernsey), the captive insurance Captive insurance companies are limited purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups, they sometimes also insure risks of the parent company's customers. company of Thomas Greg and Sons Limited (TGS TGS Tokyo Game Show TGS Ticket-Granting Service TGS Ticket-granting Server TGS The Good Shepherd TGS Teen Girl Squad TGS The Gargoyles Saga TGS Texas Gourd Society TGS Tomato Growers Supply TGS Trinity Grammar School TGS Tomographic Gamma Scanner ), a printing and security specialist. The outlook for both ratings is stable. The ratings reflect Connaught's current and prospective solid risk-adjusted capital position, in line with a strong profitability. In early 2007, TGS disposed of a significant proportion of a security company in Colombia, which was the main source of cash in transit (CiT) business for Connaught. Therefore, an offsetting factor on Connaught's rating is the significant reduction in premium volume (approximately 40% in 2007) that increasingly restricts the company's business profile. In A.M. Best's view, Connaught's practice of full earnings retention is likely to be maintained, and given the decline in volatility inherent to the previously written CiT business, the company's risk-adjusted capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper is expected to remain solid over the next two years despite currently lacking an outwards 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. programme. Meanwhile, the company's return on equity is expected to be very good and within the range of 12%-16% over the next two years. 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. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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