A.M. Best Affirms Ratings of Inter-Industry Insurance Company Limited and Its Subsidiaries.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--May 14, 2003 A.M. Best Co. has affirmed the financial strength rating of B+ (Very Good) of Inter-Industry Insurance Company Ltd (III), Isle of Man Noun 1. Isle of Man - one of the British Isles in the Irish Sea Man British Isles - Great Britain and Ireland and adjacent islands in the north Atlantic . At the same time, A.M. Best has affirmed the B+ ratings of Agricultural and General Insurance Company Limited (AGI (Artificial General Intelligence) A machine intelligence that resembles that of a human being. Considered impossible by many, most artificial intelligence (AI) research, projects and products deal with specific applications such as industrial robots, playing chess, ) and Manufactured Buildings Insurance Company Limited (MBI MBI Management Buy-In MBI Moody Bible Institute MBI Mathematical Biosciences Institute MBI Modular Building Institute MBI Mechanical Breakdown Insurance MBI Molecular Biology Institute MBI Maslach Burnout Inventory (psychometrics) ), which are subsidiaries of III and satisfy A.M. Best's reinsured rating criteria. The stable outlook on the ratings is maintained. The ratings reflect III's very good consolidated risk-based capital and prospective operating performance, and its high standards of 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. and risk controls. Offsetting rating factors include high combined ratios in the 1999 to 2002 period, inherent volatility in performance due to a lack of diversification by business line and the company's current high level of risk retention. Very good risk-based capitalisation--III's consolidated capitalisation is very good according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. A.M. Best's risk-adjusted capital model. Following a corporate reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet in 2001, policyholders' surplus reduced 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. 9.6 million (44%), mainly due to shareholder redemptions and contract termination Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). payments. However, A.M. Best does not anticipate further material reductions in policyholders' surplus as a result of changes in the company's shareholders. A.M. Best believes that capital adequacy will be maintained at a level commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the rating as prospective retained profits augment policyholders' surplus. Very good prospective operating performance--A.M Best expects III's consolidated operating performance to improve significantly for the years 2003 to 2005 with anticipated returns on net premium of over 20% as a result of reduced expense levels, a return to low loss ratios and a continuation of the company's high investment income ratio. The 1998 to 2001 years were unprofitable due to high expenses and in 2002, lower expense levels were offset by a high consolidated net loss ratio (98%) as a result of a policy limits product contamination claim at AGI. High standard of underwriting and risk controls--Despite the high consolidated net loss ratio in 2002, the overall experience in the last five years has been excellent, averaging 56%. A.M. Best believes this reflects the specialist underwriting and risk management services provided to policyholders by III. A loss ratio under 50% is expected for the financial year ending 31st May 2003. Expectations: -- A.M. Best does not foresee any significant changes in the type of risk III underwrites or its current portfolio of policyholders. -- The company will maintain its risk-adjusted capitalisation at the current level or above as assessed using A.M. Best's capital model. -- Technical account profits are expected for the financial years 2003 to 2005. 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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