A.M. Best Assigns "A-" - Excellent - Rating to Stockton Reinsurance Ltd.OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 2, 1998--A.M. Best Co. has assigned an "A-" (Excellent) rating to Stockton 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. Ltd., Bermuda. The rating reflects Stockton's excellent capitalization, consistently strong operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before and returns on equity, reinsurance market presence, management and 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. talent, premium growth and profitability. It also reflects management's commitment to sound underwriting practices, rigorous actuarial analysis Actuarial Analysis The analysis of an investment's risk done by an actuary. Notes: A highly educated actuary will use statistics and historical data in an attempt to measure the risk of a particular investment. See also: Actuary, Life Insurance, Risk, Risk Averse and effective operating procedures--all of which have made the company a recognized leader of finite reinsurance Finite Reinsurance A type of reinsurance that transfers over only a finite or limited amount of risk. Risk is reduced through accounting or financial methods, along with the actual transfer of economic risk. in the global market. Stockton Re is the principal operating subsidiary 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 Stockton Holdings, Ltd. Stockton Re has excellent leverage and liquidity ratios, and the company's financial flexibility has allowed it to reach record operating results. Equity grew to $504 million at March 31, 1998--an increase of 13% over the previous fiscal year. Over the past five years, return on premium has averaged 113.5%. Stockton Re has emphasized "customized solutions to meet specific client needs" and has addressed competitive pressures by remaining committed to sound underwriting practices, which mandate extensive review and actuarial analysis and well-defined limits of liability. Management provides customized products to meet contemporary market needs, proven modeling techniques and a solid financial base with which to attract and maintain quality clients. In addition, Stockton Re has ongoing fixed future revenue from a large portfolio of multi-year contracts, tax advantages associated with its Bermuda domicile domicile (dŏm`əsīl'), one's legal residence. This may or may not be the place where one actually resides at any one time. The domicile is the permanent home to which one is presumed to have the intention of returning whenever the purpose , a highly focused management team and a quality investment portfolio. The company's new chief executive officer has also hired talented and well-regarded finite underwriters who will help Stockton Re retain existing clients and acquire new profitable premiums. Based on the company's new operating and executive management, the continuity and experience of the company's board of directors and Stockton Re's history of solid operating results and equity growth, A.M. Best views the long-term rating outlook as 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: A.M. Best, Oldwick Jeffrey Dunsavage, 908/439-2200, ext. 5618 dunsavj@ambest.com |
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