A.M. Best Affirms Ratings of Rembrandt Insurance Company, Ltd.OLDWICK, N.J. -- A.M. Best Co. has affirmed 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 and its solid financial performance. An offsetting factor remains its 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 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. 26 million. At year-end 2006, the company's risk-adjusted capitalisation has improved and remained supportive of the current rating despite a significant growth in 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. (37.4%). This growth was partly due to third-party business, an increase in marine activity and a special one-off political risk insurance arrangement with a third party. A.M. Best believes Rembrandt is likely to generate an annual 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 12 - 13 million over the next two years, largely as a result of stable 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 65% in 2007 and 2008--deteriorating from 58.4% in 2006--mainly as a result of the expected poor claims experience from third party business, which Rembrandt has stopped writing since 30 June 2006. Rembrandt benefits from a very low expense ratio as the company continues to benefit from low staff costs and the advantage of utilizing services from group companies, and A.M. Best forecasts it to remain in line with the 2006 level of 2%. In A.M. Best's opinion, Rembrandt is exposed to high risk concentration by line of business (marine cargo and charterers' liability risks accounted for 88% of the gross premium income in 2006). 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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