A.M. Best Affirms Ratings of Rutland Insurance Ltd.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and the issuer credit rating of "bbb" of Rutland Insurance Ltd (Rutland) (Guernsey), which is the single parent captive of Anglian Water Group plc (AWG (American Wiring Gauge) A U.S. measurement standard of the diameter of non-ferrous wire, which includes copper and aluminum. In general, the thicker the wire, the greater the current-carrying capacity and the longer the distance it can span. ). The outlook on both ratings remains stable. AWG consists of two main businesses: Anglian Water Services Limited (Anglian Water), which is geographically the largest water company in England and Wales England and Wales are both constituent countries of the United Kingdom, that together share a single legal system: English law. Legislatively, England and Wales are treated as a single unit (see State (law)) for the conflict of laws. , and Morrison plc (Morrison), a U.K.-based infrastructure construction and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services company. The ratings reflect Rutland's improved prospective risk-adjusted capitalisation and strong liquidity position. An offsetting factor is the business dependence on a single source of insurance premiums. A.M. Best believes that Rutland's risk-adjusted capital position is likely to improve over the next two years from a very good position in 2005. In A.M. Best's opinion, projected decreases in premium income and loss reserves, as a result of better than expected claims run-off, are likely to reduce risk-adjusted capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Additionally, lower investment risk exposure is likely to positively impact Rutland's risk-adjusted capitalisation. In A.M. Best's view, Rutland's prospective overall liquidity is likely to remain strong as the company maintains the majority of its assets in liquidity funds or cash. A.M. Best believes that Rutland's business profile is limited as it only insures risks related to Morrison. Premium income is expected to decline by approximately 20% by year-end March 2006 due to an expected reduction in premiums relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc employers' liability employers' liability: see workers' compensation. risks. 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. For current Best's Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. 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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