A.M. Best Affirms Ratings of Lloyd's Syndicate 958.OLDWICK, N.J. -- A.M. Best Co. has affirmed the Best's Syndicate 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 Lloyd's Syndicate 958 (United Kingdom), which is managed by Omega 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. Agents Limited (OUAL). At the same time, A.M Best has affirmed the "bbb" ICR of Omega Insurance Holdings Limited (OIH OIH Office of International Health OIH Ohio Industries for the Handicapped, Inc. ) (Bermuda). The outlook on the syndicate's ratings has been revised to stable from positive, to bring the outlook in line with the outlook on the ratings of Lloyd's of London Not to be confused with Lloyds Bank or Lloyd's Register. Lloyd's of London is a British insurance market. It serves as a meeting place where multiple financial backers or “members”, whether individuals (traditionally known as . This action is also reflected in a revision in the outlook for the OIH rating to stable from positive. The ratings reflect the financial strength of the Lloyd's market, which underpins the security of all Lloyd's syndicates. In addition, A.M Best's believes that syndicate 958 benefits from the financial flexibility provided by its parent company OIH and Omega group's excellent consolidated risk-adjusted capitalisation in 2008. The syndicate has reduced its underwriting capacity to 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. 249 million in 2008 from GBP 275 million the previous year in response to deteriorating market conditions. The reduction was effected by non-renewing a 10% qualifying quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). with Omega Specialty Insurance Company Limited (OSIL). The syndicate continues to benefit from a 20% whole account quota share 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. arrangement with OSIL. A.M Best believes syndicate 958's combined ratio in 2008 will remain excellent at approximately 88% to 93% on an annually accounted basis (2007: 85%), assuming normal catastrophe activity, despite downward pressure on rates in the company's property and professional indemnity portfolios. Performance is likely to be supported by the syndicate's ongoing focus on management of capacity through the underwriting cycle, its comprehensive reinsurance programme and the group's strong risk monitoring and control infrastructure. A return on capacity for the 2006 and 2007 years of account in excess of 12.5% and 5% respectively is expected, supported by a favourable rating environment for US exposed property business. Syndicate 958 has a good business profile within the London Market as a specialist underwriter of short-tail, small to medium sized property risks, predominantly located in the US (approximately 52% of gross written premium in 2007 derived from US business). In addition, A.M. Best believes that the syndicate benefits from its presence in the European market through Omega Europe GmbH, a 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. of OIH that operates solely as a coverholder to the syndicate. 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 global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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