A.M. Best Affirms Ratings of XL Capital Group; Assigns Negative Outlook.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--March 26, 2004 A.M. Best Co. has affirmed the financial strength ratings of A+ (Superior) of XL Capital Group (Hamilton, Bermuda) and its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . Concurrently, A.M. Best has affirmed all existing debt ratings, including "a-"senior debt, "bbb+" subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and "bbb" preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . All ratings have been removed from under review and assigned a negative outlook. The removal of the ratings from under review follows the successful issuance of XL Capital Ltd's (XL Capital) (NYSE NYSE See: New York Stock Exchange :XL) (Bermuda) $750 million 6.5% adjustable conversion rate Equity Security Units (ESU), which were previously assigned an "a-" senior debt rating. Proceeds from the ESU were used to replenish the capital of the XL Capital Group and certain of its core operating subsidiaries. The negative outlook is based on A.M. Best's concern with the sufficiency of XL Capital's consolidated capital base for the group's current rating given the recent premium growth and market expansion into insurance lines of business. The outlook will remain negative until A.M. Best completes its due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. process during the second quarter of 2004. For a complete listing of the financial strength and debt ratings of XL Capital Ltd., please visit www.ambest.com/press/032601xlcapital.pdf. For current Best's Ratings, independent data and analysis on more than 470 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. companies, please visit http://www3.ambest.com/reinsurance/. For a list of A.M. Best's debt ratings, please visit http://www3.ambest.com/debtratings/. 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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