A.M. Best Affirms Ratings of Subsidiaries of Old Republic International Corporation.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 FSRs of A+ (Superior) and the ICRs of "aa-" of Old Republic Group (Chicago, IL) and its members, Great West Casualty Company (Great West) (South Sioux City Sioux City, city (1990 pop. 80,505), seat of Woodbury co., NW Iowa, at the junction of the Big Sioux and Floyd rivers with the Missouri; inc. 1857. It is a shipping, wholesale trade, and industrial center for an extensive agricultural and livestock area (including , NE) and Bituminous bi·tu·mi·nous adj. 1. Like or containing bitumen. 2. Of or relating to bituminous coal. Adj. 1. bituminous - resembling or containing bitumen; "bituminous coal" Insurance Companies (Rock Island, IL) and its members, all subsidiaries of Old Republic International Corporation (Old Republic) (NYSE NYSE See: New York Stock Exchange :ORI) (Chicago, IL). The outlook for all ratings is stable. (See link below for a detailed list of these ratings and the ratings of other subsidiaries.) The affirmation of the ratings of Old Republic Group--which is comprised of Old Republic Insurance Company (ORINSCO) and a reinsured affiliate--reflects its strong risk-adjusted capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , solid profitability and flagship carrier leadership position among Old Republic's property/casualty insurers. The ratings also consider the group's expertise within the alternative risk transfer market and specialty commercial segments, as well as management's emphasis on loss control and commitment to delivering quality insurance and related services. While the group's operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before were dampened somewhat during the soft market years from 2000 through 2002, largely due to the assumption of business from Great West and adverse loss reserve development, operating performance remained profitable and has since increased to highly profitable levels again. Great West's rating affirmations reflect its excellent, albeit lower capitalization, strong operating profitability in recent years and strategic role within the Old Republic property/casualty group. The ratings recognize its specialty niche 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. expertise and knowledge of the commercial trucking market, emphasis on claims handling and risk control and the competitive advantages afforded by its low expense ratio and long-standing agency relationships. These strengths are partially offset by its significant business concentration in the commercial trucking industry, and the cyclicality and variability associated with this particular market as evidenced over the past decade. Bituminous Insurance Companies' rating affirmations reflect its strong capitalization, as well as strong and consistent operating profitability. The ratings also acknowledge the group's loss control and risk management expertise as an underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. of specialty risk transfer programs for the construction, oil and gas extraction and forest products industries. These positive rating factors are partially offset by the emergence of adverse loss reserve development in recent years, including the emergence of asbestos asbestos, mineral asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. and environmental (A&E) claims and, to a lesser degree, above-average common stock leverage. All of the ratings recognize the financial flexibility afforded them by their ultimate, publicly-traded parent, Old Republic. For a complete list of Old Republic International Corporation's FSRs, ICRs and debt ratings please visit www.ambest.com/press/062306oldrepublicinternational.pdf. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion