A.M. Best Affirms Ratings of Gerling-Konzern Allgemeine Versicherungs-AG.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 22, 2002 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 ratings of A- (Excellent) of Gerling-Konzern Allgemeine Versicherungs-AG (GKA GKA Goroka, Papua New Guinea - Goroka (Airport Code) GKA Global Key Account ) and its core subsidiaries (see list below). At the same time, the ratings have been removed from under review with negative implications where they were placed on 15 March 2002, following significant losses at Gerling's 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. operations that has now been addressed (see A.M. Best's 8/22 Gerling-Konzern Globale Ruckversicherungs-AG press release). The outlook is stable. The ratings reflect GKA's excellent 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 and strong business position as a primary insurer in the commercial and industrial sectors. An offsetting factor includes GKA's historical weak although improving operating performance. Excellent capitalisation--A.M. Best regards GKA's historical and prospective risk-based capitalisation as excellent. In 2001, GKA increased its reported capital base by 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. 137.8 million (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. 134.5 million) to EUR 615.4 million (USD 600.6 million). However, the recent capital injections into other operating companies operating company A business that engages in transactions with outsiders. of the Gerling group have negatively limited GKA's prospects of group capital support. Notwithstanding this, A.M. Best does not anticipate additional capital needs in the next two years for GKA to fulfill its business plans. Excellent business position--GKA is the third-largest non-life insurer in Germany and one of the leading providers of industrial insurance world-wide. GKA benefits from its strong direct relationship with its industrial clients and an extensive global branch network. GKA is gradually reducing its dependence on industrial insurance by expanding its commercial and private lines business. Weak but improving operating performance--GKA is benefiting, particularly in the industrial sector, from significant rate increases. This, together with the review of the company's 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. strategy and stricter operational controls, leads A.M. Best to expect an improved 103% consolidated combined ratio in 2002 (111.1% in 2001). GKA's five-year average combined rate was 110.4%, reflecting weak underwriting performance in its core segment industrial business. Expectations: - Gerling-Konzern Allgemeine Versicherungs AG - Gerling America Insurance Co. - Gerling Canada Insurance Co. The following companies have had their financial strength ratings of A- (Excellent) affirmed: - Gerling-Konzern Allgemeine Versicherungs AG - Gerling America Insurance Co. - Gerling Canada Insurance Co. 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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