A.M. Best Affirms Ratings of GE Frankona Group; Removes Ratings From Under Review and Assigns Stable Outlook.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings of A (Excellent) and the issuer credit ratings of "a" of the operating companies operating company A business that engages in transactions with outsiders. of GE Frankona Group (Germany). All ratings have been removed from under review with negative implications and assigned a stable outlook. (See related A.M. Best press release dated March 31, 2005, regarding the rating action on GE Frankona's parent, Employers 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 (ERC (database) ERC - An extended entity-relationship model. ).) These ratings were placed under review on February 7, 2005, in line with its parent company, and based on explicit support in the form of claims guarantees to each subsidiary. This financial support remains in place following the affirmation of the parent's rating. GE Frankona's ratings also factor the maintenance of excellent capitalization in all rated entities and excellent 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. results with a consolidated combined ratio of 87.1% in 2004. A.M. Best expects the combined ratio to deteriorate slightly by three percentage points to 90% in 2005 as the exceptionally low loss frequency experience in the previous year is unlikely to be sustained in 2005. GE Frankona's business profile in Europe remains excellent despite a 19% decline in gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. to EUR EUR In currencies, this is the abbreviation for the Euro. 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. 2.9 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. 4.0 billion) in 2004. This was mainly due to withdrawal from unprofitable businesses such as large global casualty risks, catastrophe exposed industrial risks, pharmaceutical and German proportional motor business. The run off of unprofitable business and a relatively stable renewal experience in Europe will lead to a marginal decline in gross premiums written. The financial strength ratings of A (Excellent) and the issuer credit ratings of "a" have been affirmed for the following companies of GE Frankona Group: --GE Frankona Rueckversicherungs-AG --GE Frankona Reinsurance A/S --GE Frankona Reinsurance Limited --GE Frankona Reassurance Limited --GE ERC Strategic Reinsurance Limited --Luxembourg European Reinsurance S.A. 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. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit http://www.ambest.com/reinsurance/. 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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