A.M. Best Affirms Ratings of Milli Re.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of B+ (Good) 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 "bbb-" of Milli Reasurans Turk Anonim Sirketi (Milli Re) (Turkey). The outlook on both ratings remains positive. The positive outlook reflects Milli Re's maintenance of an improving risk-adjusted capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper in 2006 and prospective 2007. The ratings reflect the company's good operating results and strong position in the Turkish 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. market despite significant exposure to loss making lines. Milli Re continues to have a strong risk-adjusted capitalisation, which is supported by good operating performance, although dependent on current investment income in 2006 and projected 2007 and 2008. However, Mille Re's 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. performance deteriorated in 2006 to a combined ratio of 102.8%, and A.M. Best expects it to remain over 100% over the next two years as the company's main portfolios are expected to maintain their high loss ratios. A.M. Best projects Milli Re's overall earnings at approximately TRY 100 million (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. 79 million) in 2007. Milli Re maintains its leading position in the Turkish reinsurance market, writing 29% of the total gross reinsurance premium, of which, slightly less than 60% was concentrated on loss making lines such as motor and healthcare in 2006. Milli Re's international expansion into Afro-Asian countries remains challenging given the intense competition in the region. The company is expected to cancel approximately TRY84 million (USD 66 million) of premiums in a bid to restore profitability in the motor business, and as a result, A.M. Best forecasts its consolidated gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. at approximately TRY 825 million (USD 652 million) in 2007, a 3.3% decline from 2006. A.M. Best expects consistent improvement in Milli Re's combined ratio, geographical diversification of the premium income and maintenance of the company's strong risk-adjusted capitalisation before an upward rating review. 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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