A.M. Best Affirms Ratings of Tryg-Baltica Insurance, International Insurance Company A/S and Tryg-Baltica International -UK- Limited.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 23, 2003 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 A- (Excellent) financial strength ratings of Tryg-Baltica Insurance, International Insurance Company A/S ('TBI') and Tryg-Baltica International (UK) Limited ('TBI UK'). The negative outlook applied to both ratings in October 2002 is maintained. The rating actions reflect the restoration of the capital base and stronger consolidated risk-adjusted capital position, and prospective improvements in operating performance. Restoration of capital base--On a risk-adjusted basis, the consolidated capital position is commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the current rating level, having benefited from two capital injections in 2002. The position is forecast to further improve as a consequence of prospectively improving earnings, potentially lower reserve risk and reduced dependence on 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. . Prospectively improving operating performance--The new management team has enhanced 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. disciplines and controls in addition to restructuring the portfolio with a focus on premium limits, hurdle rates Hurdle Rate The minimum amount of return that a person requires before they will make an investment in something. Notes: This is the rate of return that will get someone "over the hurdle" and invest their money. and higher deductibles. A.M. Best forecasts a return to profitability on both an underwriting (combined ratio below 100%) and bottom line basis by year-end 2003. The negative outlook reflects the lack of a track record with regard to the sustainability and success of the new strategy and portfolio restructuring Portfolio restructuring Applies to derivative products. Recomposition of a portfolio's asset mix by selling off undesired asset types (equities, debt, or cash) or specific securities within that class, while simultaneously buying desired types or securities. , and some uncertainties surrounding reserve development, particularly with the run-off of the energy account. Expectations: -- Consolidated 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 will be maintained at least at the 2002 year-end level as measured by A.M. Best's risk based capital model. -- Consolidated profitability will improve, benefiting from the restructuring and re-underwriting of the UK and Danish portfolios and improved market conditions. 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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