A.M. Best Affirms Ratings of Glacier Reinsurance AG and Its Subsidiary.OLDWICK, N.J., U.S.A. -- 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 ratings of "a-" of Glacier glacier, moving mass of ice that survives year to year, formed by the compacting of snow into névé and then into granular ice and set in motion outward and downward by the force of gravity and the stress of its accumulated mass. 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. AG (Glacier Re) (Switzerland) and its subsidiary, Glacier Insurance AG (Glacier Insurance) (Liechtenstein). The outlook on all ratings remains stable. The ratings of Glacier Re reflect its excellent prospective risk-adjusted capitalisation, good technical performance and developing business profile. Offsetting factors are deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in risk-adjusted capitalisation to year-end 2007 due to higher than anticipated growth. The ratings of Glacier Insurance reflect the reinsurance support of its parent company in the form of a 95% 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). agreement. Despite weakening in 2007, A.M. Best anticipates that Glacier Re will maintain excellent risk-adjusted capitalisation during 2008 and 2009, supported by full retention of earnings and stabilisation in growth. A.M. Best believes that enhancements to diversification in 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. portfolio and additional reinsurance protection purchased in 2008 are likely to reduce prospective earnings volatility and the potential for capital erosion from large catastrophe events. A.M. Best acknowledges Glacier Re's ongoing development of its enterprise risk management system and expects the company to manage its reinsurance protection in line with its continued premium growth. Glacier Re is expected to report a good technical result in 2008, albeit reduced, due to deterioration in reinsurance rating conditions for its core property catastrophe, aviation and energy lines of business. A combined ratio of 85%-90% is anticipated, assuming normal catastrophe experience, supported by moderation in the company's expansion of its direct and reinsurance lines of business. A.M. Best believes that Glacier Re has a good developing business profile. In 2008 and ahead, the company is expected to continue to improve the diversification of its account by increasing the proportion of direct gross premiums underwritten by Glacier Insurance (accounting for approximately 9% of total 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. in 2007). 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 www.ambest.com/ratings. 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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