A.M. Best Affirms Ratings of UNUM Limited.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 UNUM Limited (UNUM) (United Kingdom). The outlook for both ratings is negative. The ratings reflect UNUM's strong and stable business profile, strong operating performance and strong risk-adjusted capitalisation. UNUM continues to hold a leading position in the UK group risk market with market share of approximately 35%. A.M. Best believes that UNUM's 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. will grow by 5% in 2007 to GBP GBP In currencies, this is the abbreviation for the British Pound. 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. 571 million (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. 1,167 million). This follows a decline over the past two years of 14%, which was due to the significantly high inorganic growth Inorganic growth is the rate of business, sales expansion etc. by increasing output and business reach by acquring new businesses by way of mergers, acquisitions and take-overs. experienced by UNUM over the past three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time effects of which are now beginning to wane. A.M. Best believes that UNUM's focus on rehabilitation rehabilitation: see physical therapy. in support of its protection products will help it retain its leading position in group income protection, while premiums for group life are likely to continue declining. A.M. Best believes that UNUM's net profits will increase by approximately 6% in 2007, continuing the strong development of the last two years. Expense ratios remained stable in 2006 at about 20% and are expected to remain at this level in 2007 as a result of the expected steady premium growth. A.M. Best expects the profitability of UNUM's group life business to remain relatively low (when compared with its other products); however, given the low contribution of this business to overall profits, this is not expected to have a significant effect on UNUM's overall profitability. A.M. Best believes that UNUM's risk-adjusted capitalisation will remain strong in 2007. Although dividend payments are expected to rise, A.M. Best believes that UNUM's strong capital base, an asset mix heavily weighted towards bonds, and the modest business growth expected over the next three years will keep the risk-adjusted capitalisation in line with A.M. Best's tolerance levels for the ratings. 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 global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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