A.M. Best Affirms Ratings of HSB Engineering Insurance Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) and the issuer credit rating (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 HSB (Hue Saturation Brightness) A color space that is similar to the way an artist mixes colors by adding black and white to pure pigments. The pigments are the hues (H), measured in a circle from 0 to 359 degrees (0=red, 60=yellow, 120=green, 180=cyan, 240=blue, Engineering Insurance Limited (HSBEIL) (United Kingdom). The outlook for both ratings remains stable. A.M. Best's analysis is based on review of HSBEIL's consolidated financial position. In A.M. Best's opinion, HSBEIL is likely to maintain excellent stand-alone risk-adjusted capitalisation during 2007-09, taking into account expected dividend payments to its parent company, The Hartford Steam Boiler Inspection and Insurance Company (Connecticut) (HSB), of three quarters of post-tax profits from 2007. A.M. Best anticipates a continuation in HSBEIL's focus on disciplined underwriting but expects soft market conditions during 2007 to result in a deterioration in the combined ratio to 85%-90% (from 79% in 2006). The rating of HSBEIL also factors support from its parent, reflecting HSBEIL's importance as the group's principle source of international growth outside 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. . A.M. Best believes that HSBEIL's consolidated 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. are likely to increase to approximately 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. 200 million in 2007 (from USD 182.5 million in 2006). This premium growth reflects development of HSBEIL's existing markets in the United Kingdom, continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. , Australia and Canada, as well as the partially offsetting impact of continued soft market conditions across the engineering insurance sector in 2007. In A.M. Best's opinion, HSBEIL benefits from a competitive advantage in the sector from its extensive engineering database. In particular, the company is able to make use of its global access to machinery replacement parts to moderate claims costs. HSBEIL also has a good 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. programme in place for 2007, placed with a strong panel of reinsurers which are selected centrally by HSB. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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