A.M. Best Assigns "A" -Excellent- Rating to United Educators Insurance Risk Retention Group.OLDWICK, N.J.--(BUSINESS WIRE)--July 1, 1998--A.M. Best Co. has assigned an "A" (Excellent) rating to United Educators Insurance Risk Retention Group, Burlington, Vt. The rating reflects the market presence and operating capabilities Noun 1. operating capability - the capability of a technological system to perform as intended performance capability capability, capableness - the quality of being capable -- physically or intellectually or legally; "he worked to the limits of his of its Bermuda-based affiliate -- School, College and University Underwriters, Ltd. (SCUUL) -- with which it reinsures a significant portion of its 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. . These positive rating factors are derived from SCUUL's excellent capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , sound liquidity, generally profitable operations and well-established market position as a provider of insurance products to meet the needs of nationwide educational institutions. Offsetting these positive rating factors are the company's recent unfavorable loss-reserve development and the inherent narrow spread of risk associated with niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. operations. Management believes that the reserve development, primarily from educators' legal liability, has been corrected. In addition, management has diversified diversified (di·verˑ·s its 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. to secondary schools and has offered additional products to attract and retain insureds. Based on management's focused operations, expertise and capital position, the rating outlook is stable. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.
CONTACT: Jeffrey Dunsavage
(908) 439-2200, ext. 5618
dunsavj@ambest.com
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