A.M. Best Affirms Ratings of the Main Operating Entities of Royal & Sun Alliance Insurance Group plc.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) and the issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-" of the rated operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of Royal & Sun Alliance Insurance Group plc (R&SA) (United Kingdom). A.M. Best has also affirmed the ratings of R&SA's debt instruments, which are guaranteed by Royal & Sun Alliance Insurance plc. The outlook on all ratings remains positive. (See below for a detailed list of ratings.) The group's consolidated risk-adjusted capitalisation is likely to remain excellent in 2007 and 2008, despite A.M. Best's expectation that growth in the United Kingdom and selected emerging markets will be strong over this period. In addition, the ratings reflect the reduced potential for capital volatility as a result of reserve deterioration, owing in part to the sale of the group's U.S. operation to Arrowpoint Capital in March 2007. A.M. Best expects a solid combined ratio between 95% and 100% in 2007 (compared with 98% in 2006), despite net flood losses of approximately 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. 120 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. 248 million) from the June and July events in the United Kingdom and deteriorating premium rates in the group's core UK market. Results are likely to be supported by strong performance from R&SA's Scandinavian personal lines business and favourable reserve development on recent accident years. R&SA maintains an excellent business profile in its principal markets. Over recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time group has ceased 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. business deemed unprofitable and disposed of some of its non-core operations, including its U.S. run-off operation. A.M. Best believes the group is now well placed to strengthen its competitive position in its core profitable markets, particularly the United Kingdom, Scandinavia and Canada, as well as selected emerging markets. The FSR of A- (Excellent) and the ICR of "a-" of the following subsidiaries of Royal & Sun Alliance Insurance Group plc have been affirmed: * Royal & Sun Alliance Insurance plc * The Globe Insurance Company Limited * Sun Insurance Office Limited * The London Assurance * Royal & Sun Alliance 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. Limited * Sun Alliance and London Insurance plc The following debt ratings have been affirmed: Royal & Sun Alliance Insurance Group plc (guaranteed by Royal & Sun Alliance Insurance plc)-- -- "bbb" on EUR EUR In currencies, this is the abbreviation for the Euro. 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. 200 million 6.875% subordinated notes, due 15 October 2019 -- "bbb" on EUR 300 million floating rate subordinated notes, due 15 October 2019 -- "bbb" on USD 23,679,000 8.95% subordinated notes, due 15 October 2029 -- "bbb" on GBP 450 million 8.5% perpetual subordinated notes The following debt rating has been upgraded: Royal & Sun Alliance Insurance Group plc (guaranteed by Royal & Sun Alliance Insurance plc)-- -- to "bbb" from "bbb-" on GBP 375 million 6.701% perpetual subordinated notes The FSR of A- (Excellent) of Royal & Sun Alliance Insurance Group plc has been withdrawn and its ICR revised to "bbb-" from "a-" to reflect the company's non-operating status. The following rating on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. has been revised: Royal & Sun Alliance Insurance Group plc-- -- to "bb-" from "bbb-" on GBP 125 million 7.375% preferred stock 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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