A.M. Best Affirms Ratings of Imagine Insurance Company Limited; Assigns Negative Outlook.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Imagine Insurance Company Limited (Imagine) (Barbados). The ratings have been removed from under review with negative implications and assigned a negative outlook. These rating actions follow A.M. Best's review of Imagine's risk-based capital strengthening plan following losses incurred from hurricanes Katrina, Rita and Wilma. Imagine's capital base will be strengthened through the issuance of a privately held 10-year $50 million subordinate note with primary owner Brookfield Asset Management  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Inc. (NYSE NYSE See: New York Stock Exchange : BAM Bam (bäm), town (1996 pop. 70,100), Kerman prov., SE Iran, on the intermittent Bam River. Located on the western edge of the Dasht-e Lut, Bam is a trade center in a henna-growing region. Dates and other fruits are also grown; camels are raised. ). The subordinate note will be issued by Imagine's immediate parent, Imagine Group Holdings Limited (Barbados) and contributed to Imagine as common share equity. The contribution of the $50 million to Imagine, which is expected to be completed shortly, increases its risk-based capital score to an appropriate level for its current ratings. The reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. of a negative outlook is based on Imagine's business profile, which in addition to its portfolio of traditional insurance and 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. business, includes a significant level of both finite risk and traditional reinsurance with contractual caps or other loss mitigating features. The heightened level of scrutiny by state and federal regulators focused on finite reinsurance Finite Reinsurance A type of reinsurance that transfers over only a finite or limited amount of risk. Risk is reduced through accounting or financial methods, along with the actual transfer of economic risk. and contractually capped multi-year reinsurance transactions has resulted in subpoenas being issued to both sellers and buyers of finite products and as a result, present a heightened level of operational risk to Imagine. The future viability of finite products will remain uncertain until current governmental scrutiny is complete and any new requirements regarding finite products are established. 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. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit www.ambest.com/reinsurance/. 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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