A.M. Best Affirms Ratings of General Re Group, General Re Corporation and General Re Life Corporation.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A++ (Superior) and issuer credit ratings (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 "aa+" of General Re Group and its members (Gen Re) (Delaware). These ratings apply to General 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 (Delaware) and its core property/casualty and life reinsurance and insurance subsidiaries operating both 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 internationally. In addition, A.M. Best has affirmed the ICR and senior debt ratings of "aa+" and the commercial paper of AMB-1+ of Gen Re's direct parent, General Re Corporation (headquartered in Connecticut). The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.) These ratings reflect Gen Re's superior capitalization, excellent business position as a leader within the global reinsurance marketplace and adherence to stringent 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. discipline, which lends to the group's strong prospective earnings capability. In addition, solid investment earnings continue to support excellent total return measures, while Gen Re maintains strong liquidity given the solid credit quality of its fixed income holdings. The group's superior ratings also reflect the implicit and explicit financial support provided by its ultimate parent, Berkshire Hathaway Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. Inc. (Nebraska). Gen Re's risk-adjusted capitalization has improved considerably over the most recent five-year period, supported by sizeable reinsurance transactions with affiliates, National Indemnity Company and Columbia Insurance Company, both currently rated A++ (Superior). These reinsurance transactions, which were effective on January 1, 2005, include a loss portfolio reinsurance contract and a quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). reinsurance contract, both of which provided significant reinsurance protection to Gen Re. Additionally, strong total return measures bolstered by very strong underwriting results and solid investment income generation have supported the group's ability to generate the accumulation of capital, as its consolidated GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). equity approximated $12.5 billion at year-end 2007. Somewhat offsetting these positive rating factors are the competitive pressures in the global property/casualty reinsurance market, which could potentially suppress Gen Re's mid-to-long-term underwriting results and pressure its overall expense position. Furthermore, although Gen Re has considerably strengthened its overall loss reserve position, there has been some adverse development on prior accident year casualty reserves primarily attributed to workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. , and environmental claims. Given Gen Re's stringent underwriting and improved reserving practices, the impact of prior year reserve development has moderated significantly, while recent accident year loss ratios are demonstrating favorable trends. Due to the aforementioned reinsurance transactions, Gen Re's overall liability leverage is conservative, which reduces the impact of potential loss reserve development on its risk-adjusted capitalization. The affirmation of the ratings of General Re Life Corporation (General Re Life) (Stanford, CT) reflect a weak underwriting profit Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. , which is due to poor results in long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. and discontinued workers' compensation carve out business. The ratings of General Re Life recognize the ongoing support provided by Gen Re, and therefore are afforded the group ratings status. The FSR of A++ (Superior) and ICRs of "aa+" have been affirmed for General Re Group and its following core property/casualty and life reinsurance and insurance members: * General Re Life Corporation * Faraday faraday /far·a·day/ (F ) (far´ah-da) the electric charge carried by one mole of electrons or one equivalent weight of ions, equal to 9.649 × 104coulombs. far·a·day n. Reinsurance Company Limited * General Reinsurance Corporation * General Star Indemnity Company * General Star National Insurance Company * Genesis Indemnity Insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments Company * Genesis Insurance Company * General Reinsurance UK Limited * Kolnische Ruckversicherungs-Gesellschaft AG * General Reinsurance Australia Ltd * General Reinsurance Africa Ltd. * General Reinsurance Life UK Limited * General Reinsurance Life Australia Ltd. The ICR of "aa+" has been affirmed for General Re Corporation. The following debt ratings have been affirmed: General Re Corporation-- -- "aa+" on $150 million 9% senior unsecured debentures, due 2009 -- AMB-1+ on commercial paper The FSR of A- (Excellent) and ICR of "a-" have been affirmed for Idealife Insurance Company. 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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