A.M. Best Assigns "A" (Excellent) to Societe de Reassurance des Assurances Mutuelles Agricoles.OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 2, 1997--Effective immediately, A.M. Best has assigned an initial Best's Rating 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. of "A" (Excellent)--its third-highest rating--to Societe de Reassurance des Assurances Mutuelles Agricoles (Sorema) of Paris, France. The rating applies to the parent company, Sorema S.A. in Paris, and its two wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Sorema (UK) Ltd. in the United Kingdom and Sorema North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. 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. Co. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The rating is based on the consolidation of these companies. The rating of Sorema North America Reinsurance Co. is raised from "A-" (Excellent) to A, based on the strength of its parent, which has guaranteed to support the liabilities of its subsidiaries. The rating also reflects the integrated operation of Sorema S.A.'s subsidiaries, which receive capital support from the parent. After reorganization, Sorema S.A. became the lead unit of the reinsurance group. Sorema possesses excellent capitalization, which has doubled in the past two years, solid reserving and continued market presence in its specialty direct and broker reinsurance segments. The rating also acknowledges Sorema's flexibility as a medium-sized reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. to react quickly to changes in market conditions and its ability to focus on long-term relationships with its customers while offering specialist technical expertise in facultative covers for such niche areas as energy, petrochemical, agriculture and large industrial risks. The rating further recognizes management's conservative operating strategy, quality underwriting and positive financial position provided by Sorema's strong parent company, Groupama. Groupama fully supports Sorema as an important entity for its international presence in reinsurance. Sorema is committed to pricing integrity, which has produced solid financial income and increased capital gains. It has a good geographic mix in its premium allocation and is expanding into new regions, such as Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. . A.M. Best believes Sorema's improved earnings will benefit further from its increased loss reserve protections and limited exposure to asbestos and environmental liabilities. Sorema's positive rating factors are offset by the threat of greater premium and earnings volatility from rate softening, particularly if core ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. companies increase their retentions or amend existing reinsurance programs. Sorema also will need to maintain sufficient capacity and protect its niche markets to compete in the world reinsurance market as a medium-sized reinsurer. The rating outlook is stable based on Sorema's conservative management approach, the short-tailed nature of the portfolio and benefits derived from membership in a financially strong group. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACTs Jeffrey Dunsavage (908) 439-2200, ext. 5618 dunsavj@ambest.com |
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