A.M. Best Affirms Ratings of Koelnische Rueckversicherungs-Gesellschaft AG and Related Entities.OLDWICK, N.J. -- A.M. Best has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) 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+" for Koelnische Rueckversicherungs-Gesellschaft AG (Cologne Re) (Germany) and its subsidiaries, General 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. Life UK Limited, General Reinsurance Africa Limited, and General Reinsurance Life Australia Ltd. The outlook on all ratings is stable. These rating actions reflect Cologne Re's very strong consolidated capitalization, its excellent business profile in life reinsurance, improving profitability , and the explicit support from Berkshire Hathaway Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. through a net worth maintenance agreement. An offsetting factor is the declining business profile in some international non-life reinsurance markets. Very strong risk adjusted capitalization--In A.M. Best's view, Cologne Re is maintaining a very strong risk-adjusted capitalization, partially due to its further increased equity. Cologne Re's overall 2005 reserve run-off has been favorable in 2005 which reflects the group's conservative reserve position. Excellent business profile--Cologne Re has an excellent business profile in the global life and health reinsurance markets while its premium volume in non-life reinsurance has declined in some international markets. A.M. Best expects the group's life premium income to increase slightly in 2006 as the business continues to grow, in particular in Asia, Australia and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . The non-life business, however, is expected to continue to decline in 2006 following the run-off of the 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. business. Cologne Re's life/health results are expected to maintain strong in 2006. The non-life underwriting results are likely to deteriorate slightly in 2006 (with a combined ratio of approximately 98-99%). The rating of Faraday faraday /far·a·day/ (F ) (far´ah-da) the electric charge carried by one mole of electrons or one equivalent weight of ions, equal to 9.649 × 104coulombs. far·a·day n. Reinsurance Co. Limited remains unchanged until A.M. Best has concluded its annual review and expects to conclude the review in the next two months. 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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