A.M. Best Affirms Ratings of Glacier Reinsurance and Its Subsidiary; Revises Outlook to Stable.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating 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 rating outlook has been revised to stable from negative. The ratings of Glacier Re reflect its excellent risk-adjusted capitalization, increasingly diversified portfolio and strong earnings. The revised outlook reflects A.M. Best's expectation that Glacier Re's enterprise risk management should prospectively reduce the volatility of earnings. The ratings of Glacier Insurance are based on the strong support of the 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. Glacier Re's risk-adjusted capitalisation is further improving through the retention of earnings. During 2006, Glacier Re increased its shareholders' funds by 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. 30 million in order to compensate for higher than expected losses in 2005. A.M. Best believes that a more diversified portfolio and better catastrophe modeling
In A.M. Best's view, Glacier Re's effort to shift its 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. toward less catastrophe-prone lines and primary business (through Glacier Insurance) is resulting in a more diversified portfolio in 2007. A.M. Best expects stronger premium growth in 2007 than in 2006 (by 17% to USD 299 million), partially due to expansion of its direct insurance portfolio and a stronger focus on the small and medium enterprise segment and energy. Glacier Re achieved strong earnings in 2006 with a post-tax profit of USD 55 million (return on premium 28.5%), partially due to absence of natural catastrophes but also strong underwriting performance in other lines of business (overall combined ratio 77.6%). A.M. Best believes that as a result of overall softening reinsurance rates and higher than expected natural catastrophe losses, Glacier Re's earnings are likely to be lower in 2007 but to remain strong. A.M. Best expects Glacier Re to continue its careful expansion in its portfolio by adhering to its strict pricing and underwriting policy. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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