A.M. Best Affirms Ratings of Maiden Holdings, Ltd. and Its Subsidiaries.
OLDWICK, N.J. -- A.M. Best Co. 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- (Excellent) and issuer credit ratings (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 Maiden Insurance Company, Ltd. (MIC) (Hamilton, Bermuda) and Maiden 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 (MRC See Maximum return criterion. ) (Maryland Heights, MO), which operate through an intercompany quota share reinsurance agreement. Concurrently, A.M. Best has affirmed the ICR of "bbb-" of the parent holding company, Maiden Holdings, Ltd. (Holdings) (Hamilton, Bermuda) (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : MHLD MHLD Maritime Homeland Defense (US) ). The outlook for all ratings is stable.
The ratings reflect the solid capitalization achieved through capital contributions to each entity from Holdings, which infused the net proceeds of a private placement offering, as well as half of the proceeds raised in a recent trust preferred offering. Management anticipates infusing the balance of the trust preferred offering into MIC during 2009 in support of operations. The ratings also reflect the operational benefits that MIC derives as a 40% quota share partner with AmTrust Financial Services, Inc.'s (AFSI AFSI AmTrust Financial Services, Inc (New York, NY casualty insurer)
AFSI Americans for a Safe Israel
AFSI Asthma-Friendly Schools Initiative
AFSI American Food Safety Institute
AFSI American Feng Shui Institute ) Bermuda reinsurance subsidiary, AmTrust International Insurance, Ltd. (AII).
In addition, the ratings reflect MRC's strategic importance to Holdings as a dedicated U.S. reinsurance platform providing treaty, accident and health and specialty facultative reinsurance following its acquisition of GMAC GMAC General Motors Acceptance Corporation
GMAC Graduate Management Admission Council
GMAC Give Me A Call
GMAC Genetic Manipulation Advisory Committee
GMAC Genetic Modification Advisory Committee (Singapore)
GMAC Give Me A Chance Re and the renewal rights to business previously written through GMAC Re.
Partially offsetting these factors are the limited risk taking experience, the execution risk faced by management in achieving its business plans and the risk inherent in profitably growing business amidst soft market conditions. Despite these concerns, the rating outlook is supported by the financial commitment of Holdings, the seasoned management team across MIC operations and the close working relationship that both MIC and MRC share with AFSI.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
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.