A.M. Best Affirms Ratings of Evergreen Reinsurance Company, Ltd.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 A (Excellent) and issuer credit rating of "a" of Evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. 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, Ltd. (Evergreen Re) (Bermuda). The outlook for both ratings is stable. These ratings reflect Evergreen Re's excellent capitalization, consistently strong operating performance and its unique role as the primary insurance carrier for its ultimate parent, Evergreen Group. These positive rating factors are derived from the company's conservative 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. standards, low cost operating structure and multiple product line book of business and broad geographic exposure base. Partially offsetting these positive rating factors is Evergreen Re's exposure to earthquakes and typhoons in the Asia/Pacific region, though the risk is mitigated by policy sublimits, prudent reinsurance and the wide geographic dispersion dispersion, in chemistry dispersion, in chemistry, mixture in which fine particles of one substance are scattered throughout another substance. A dispersion is classed as a suspension, colloid, or solution. of assets insured. Furthermore, the majority of its book of business is generated from one source - Evergreen Group. Nonetheless, the group's business is diverse in scope, complexity and in its risk profile. In addition, management places great emphasis on risk control and carefully monitors its writings in order to avoid a concentration of risk. The ratings also reflect the strong level of commitment on the part of the Evergreen Group, whose management incorporates Evergreen Re as an integral component in the overall risk management program of the group. Moreover, Evergreen Re gains from its parent's global scope and business relationships. These commitments have been developed over the last several years and encompass risks located in a number of countries in East and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . Overall, Evergreen Re benefits from its parent's strong management experience and market presence, as well as Evergreen Group's adherence to a philosophy of providing a stable market for global insurance and reinsurance for the Evergreen Group and its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology. 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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