A.M. Best Affirms Ratings of Korean Reinsurance Company.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Korean 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. Company (Korean Re) (South Korea). The outlook for both ratings is stable. The ratings reflect Korean Re's continuous growth in absolute capitalization, its stable operating performance and dominant market position in the Korean reinsurance industry. Korean Re has a balanced business portfolio, and has consistently maintained its combined ratio at a level of lower than 100% for the past five years. The company has generated stable investment income due to its conservative investment strategy, which was mainly fixed-income driven. As the sole domestic reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. in South Korea, Korean Re has a dominant presence in the Korean reinsurance market. The company maintains its competitive edge by its well established business relationship with local insurers, its proactive product development strategy to meet market demand and its expertise in the domestic reinsurance market. Further diversification has been brought into the business portfolio as the company has expanded its life and overseas reinsurance operations with major growth in Asian business. Korean Re is adequately capitalized on a risk-adjusted basis, with a local solvency ratio Solvency Ratio One of many ratios used to gauge a company's ability to meet long-term obligations. Notes: Derived by taking a company's net worth and dividing by total assets. See also: Asset, Asset Valuation, Balance Sheet, Fundamental Analysis, Income Statement of 194% as of fiscal year 2005. The company has shown strong improvement in its absolute capitalization in recent years. Its five-year average growth of adjusted capital stood at 15%. The Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ) also demonstrates Korean Re's moderate capitalization. An offsetting factor is Korean Re's high underwriting leverage. A large portion of the company's retained premium both in life and personal lines contributed to the high leverage of 2.72 times as at fiscal year 2005 but had limited catastrophe exposure and no significant risk exposure. 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. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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