A.M. Best Affirms Ratings of General Re Group.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings (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 the 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+" for the General Re Group (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 of "aa+", the senior debt rating of "aa+" and the commercial paper rating of AMB-1+ of the group's direct parent, General Re Corporation (Connecticut). The outlook for all ratings is stable. (See below for a detailed list of the ratings.) The ratings consider Gen Re's strengthened balance sheet, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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 on business written since 2001, strong leadership position in the global reinsurance marketplace and adherence to stringent underwriting discipline. Gen Re's ratings also reflect both the implicit and explicit financial support provided by the group's 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. (Berkshire Hathaway) (Nebraska). These factors in turn contribute to Gen Re's strong prospective earnings capability. Gen Re's risk-adjusted capitalization has improved considerably over the past few years, which is supported by significant reinsurance protections provided by affiliates, National Indemnity Company and Columbia Insurance Company, both rated A++ (Superior). Effective January 1, 2005, these protections 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. The loss portfolio provides for a 50% reinsurance cover on existing net losses as of December 31, 2004 with an aggregate limit of $11.2 billion. The quota share contract provides for a 50% reinsurance cover on net losses from business in force on or after January 1, 2005. Gen Re has historically maintained a leadership position in the global reinsurance marketplace, ranking among the top four reinsurers worldwide. Following the events of September 11, 2001, the group embraced a more rigorous underwriting stance, eschewing unprofitable accounts and adhering to tighter underwriting standards and better management of aggregate exposure. While this has resulted in lower gross premium volume, the overall quality of its retained underwriting portfolio has significantly improved in terms of pricing, contract terms and conditions and aggregation of risk exposure. This, in concert with generally improved conditions in the U.S. and international reinsurance markets, has contributed to significantly improved accident year underwriting trends for the most recent accident years. Furthermore, Gen Re's prudent investment strategy has tempered any significant permanent write-downs in its investment holdings. Given its sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. base of invested assets, its strengthened reserve position,
availability of quota share and loss portfolio reinsurance to absorb any
unanticipated losses and improved quality of current underwriting
earnings, A.M. Best expects favorable trends exhibited in its
underwriting and overall performance to be sustainable and thereby serve
to augment its strengthened capital base.
Partially offsetting these positive rating factors are the competitive pressures in the property/casualty reinsurance segment, which, given Gen Re's conservative underwriting guidelines, may continue to compress the group's gross writings and further pressure its overall expense position. Moreover, while Gen Re has strengthened reserves over the past four years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time potential for further leakage LEAKAGE. The waste which has taken place in liquids, by their escaping out of the casks or vessels in which they were kept. By the act of March 2, 1799, s. 59, 1 Story's L. U. S, 625, it is provided that there be an allowance of two per cent for leakage, on the quantity which shall appear exists, given the recent material loss emergence in the primary insurance sector relative to long-tail casualty classes of business and increased litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. activity relative to latent liability claims. Despite these concerns, A.M. Best believes that Gen Re's financial flexibility is greatly enhanced by the explicit commitment and superior financial strength of Berkshire Hathaway. The FSRs of A++ (Superior) and the ICRs of "aa+" have been affirmed for General Re Group and its following core property/casualty and life reinsurance and insurance companies: --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 rating has been affirmed: General Re Corporation-- -- "aa+" on $150 million 9% senior unsecured debentures, due 2009 The following rating has been affirmed: General Re Corporation-- -- AMB-1+ on commercial paper At this time, the FSR of A++ (Superior) and the ICR of "aa+" of 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 Co. Limited are unchanged. A.M. Best's annual review of the company is on-going, and A.M. Best expects to conclude the review within the next two months. 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 www.ambest.com. |
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