A.M. Best Affirms Ratings of Key Operating Subsidiaries of QBE Insurance Group Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and 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 "a+" of QBE Insurance (International) Limited (QIL QIL Quad in Line QIL Quality Inspection Log QIL Quality Instruction List ) (Australia) and QBE (Query By Example) A method for describing a database query originally developed by IBM for mainframes. A replica of an empty record is displayed and the search conditions are typed in under their respective columns (fields). 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. (Europe) Limited (QBE Re) (Ireland). These companies are regarded as key operating subsidiaries of QBE Insurance Group Limited (QBE) (Australia), the non-operating holding company of the QBE group of companies. A.M. Best has also affirmed the ICR of "bbb+" of QBE. Concurrently, A.M. Best has affirmed the rating of "bbb" on the 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. 250 million 5.65% subordinated notes due 2023 and the rating of "bbb+" on the GBP GBP In currencies, this is the abbreviation for the British Pound. 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. 175 million 5.625% senior notes due 2009, both issued by QBE Insurance Group Limited. A.M. Best has also affirmed the rating of "bbb+" on the USD 375 million 20-year zero coupon senior convertible securities due 2024 issued by QBE Funding Trust III Ltd. and guaranteed by QBE. The outlook for all ratings is stable. A.M. Best considers QBE's consolidated risk-adjusted capitalisation to be excellent and likely to remain supportive (through solid retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. ) of anticipated net premium growth of approximately 10%-15% between 2004 and 2006. A.M. Best believes consolidated earnings will remain strong with a return on capital and surplus likely to be in the region of 15% at year-end 2005 (compared with 24.1% in 2004 (restated)). Overall profitability is likely to be supported by strong underwriting performance in each of its main operating divisions with a combined ratio likely to be marginally below 100% after allowing for U.S. hurricane losses and stable investment returns of 3.5% in 2005 and 2006. QBE is a well diversified commercial lines insurer (accounting for two-thirds of overall premium income) operating on a global basis across its five main markets: the Americas, Asia Pacific, Europe, Lloyd's and the United Kingdom. The company is a market leader for the majority of classes written, with projected gross premium growth into 2006 to approximately AUD AUD In currencies, this is the abbreviation for the Australian 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. 10.5 billion (USD 7.9 billion) (up from AUD 8.8 billion (USD 6.6 billion) in 2004) likely to emanate largely through acquisitions rather than rating conditions, which remain favourable despite weakening for certain lines of business. For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit 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 www.ambest.com. |
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