A.M. Best Affirms Ratings to Lemma Insurance Company.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 B+ (Good) and the issuer credit rating of "bbb-" of Lemma lemma (lĕm`ə): see theorem. (logic) lemma - A result already proved, which is needed in the proof of some further result. Insurance Company (Lemma) (Ukraine). The outlook for both ratings is stable. The ratings reflect Lemma's strong 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 , good operating performance and improving business profile. An offsetting rating factor is its significant concentration in financial risk insurance. A.M. Best believes Lemma's level of risk-adjusted capitalisation is expected to remain strong in the next two years, as a result of full earning retention and future anticipated capital injections. It is expected that Lemma's business profile will be dominated by financial risk insurance (42% of 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. in 2006), despite this line of business declining by approximately 10% in 2007. In A.M. Best's opinion, the company's business profile is expected to improve as it writes more traditional insurance lines, in particular, property, cargo and medical risks, reducing further its exposure to financial risks. Lemma will concentrate on sustaining and developing its current position in the Ukraine, where it has a leading market position, along with gradually developing opportunities in foreign markets, though this will only be a small proportion of total income. In A.M. Best's opinion, Lemma's operating performance has been good with pre-tax profits of approximately UAH UAH In currencies, this is the abbreviation for the Ukraine Hryvnia. 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. 40.5 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. 8.3 million) in 2006, comparable to the 2005 level. Its combined ratio is expected to remain good and increase over the next two years from 82% in 2006 to approximately 90% by 2008 due to Lemma's changing business profile to more traditional lines, including medical insurance, where loss ratios are expected to be higher. 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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