A.M. Best Affirms Ratings of Inter-Industry Insurance and Insurco Ltd.OLDWICK, N.J. -- 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 ratings of B+ (Very Good) of Inter-Industry Insurance Company Limited (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 ) and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Insurco Ltd (Insurco) (Isle of Man). Concurrently, A.M. Best has assigned an issuer credit rating of "bbb-" to III with a stable outlook. The outlook on the financial strength ratings has been revised from positive to stable. The ratings reflect III's continued very good risk-adjusted capitalisation, despite lower than originally anticipated profitability levels. An offsetting factor is the company's limited business profile. A.M. Best views Insurco as integral to III's strategy. The company's business position is expected to remain limited as it continues to originate its risks from a small number of insureds, written through Insurco. A.M. Best believes that the lack of 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. cover in excess of the current claim limit of 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. 2 million restricts the company's ability to attract larger risks. Furthermore, the lack of reinsurance protection of its own retention results in earnings volatility. Reported pre-tax profits are likely to stabilise around USD 700,000, as the company smooths the impact of prospective large losses through the build up of additional claims reserves. Risk adjusted capitalisation remains very good, despite III distributing dividends in excess of its net profits in 2004. A.M. Best expects capitalisation to be maintained at current levels. 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 http://www.ambest.com/ratings. 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 http://www.ambest.com. |
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