A.M. Best Affirms Ratings of Rembrandt Insurance Company, Ltd.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 A (Excellent) and the issuer credit rating of "a" of Rembrandt Insurance Company, Ltd. (Bermuda), a captive operation of Vitol Holding B.V. (Rotterdam), a global oil trading company. The outlook for both ratings remains stable. The ratings reflect Rembrandt's strong 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 and its solid financial performance. An offsetting factor is lack of diversification by line of business. A.M. Best believes Rembrandt's solid risk-adjusted capitalisation is likely to improve during each of the next two years, supported by a comprehensive retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. programme and stabilisation in net premiums written at approximately their current level. At year-end 2005, the company's risk-adjusted capitalisation deteriorated (though remained supportive of the current rating), predominantly as a result of higher than anticipated one-off significant growth in net premiums (80%). This growth was mainly due to new third-party business and increase in marine activity. A.M. Best believes that Rembrandt is likely to generate an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of approximately 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. 15 million during the next two years (compared to the USD 11.9 million in 2005), largely as a result of strong projected 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. A.M. Best forecasts that Rembrandt's loss ratio is likely to be approximately 48% - 50% in 2006 and 2007--in line with the 2005 level of 51.7%--as a result of continuing excellent results from the company's portfolio of low loss frequency business. Rembrandt benefits from a very low expense ratio, and A.M. Best forecasts it to remain in line with the 2005 level of 2%. In A.M. Best's opinion, Rembrandt is exposed to high risk concentration due to the lack of diversification by line of business (marine cargo and charterers' liability risks accounted for 90% of the gross premium income in 2005). 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. 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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