A.M. Best Assigns Best's Syndicate Rating to Lloyd's Syndicate 3000.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 30, 2003 A.M. Best Co. has assigned a Best's syndicate rating of A- (Excellent) to Lloyd's Syndicate 3000, which is managed by Markel Syndicate Management Ltd. The rating is based on A.M. Best's specific syndicate criteria. (See A.M. 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. Methodology for Lloyd's Syndicates at www.ambest.com.) The rating outlook is stable. The rating reflects the syndicate's excellent prospective operating performance and business profile, in addition to the financial strength of the Lloyd's market--currently rated A- (Excellent)--which underpins the security of all Lloyd's syndicates. Offsetting these rating factors is uncertainty created by prospective contraction of premium income through management's strategy to transfer business out of the syndicate to Markel Corporation's London market insurer, Markel International Insurance Company Ltd (MIIC MIIC Mouvement International des Intellectuels Catholiques (French) MIIC Movimiento Internacional de Intelectuales Catolicos (Spanish) MIIC Major Item Information Center ). (See related June 30, 2003, press release on MIIC.) Excellent prospective operating performance--A.M. Best expects syndicate 3000 to report operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of between 20%-25% on capacity (before personal expenses) when both the 2002 and 2003 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. years of account close. This will translate to profits of approximately 30% on net written premiums for both years. The syndicate, a product of amalgamating four Terra Nova Terra Nova may refer to: In geography:
Excellent business profile--Syndicate 3000 is an established leading underwriter of direct and facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. business in London. Business diversification at the syndicate is excellent through a wide variation of classes underwritten in a number of territories. Contraction of prospective premium income--To achieve cost savings, Markel's management may transfer business from the syndicate to MIIC. Net premiums could contract by up to 25% in 2004 to 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. 195-200 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. 313-321 million). Notwithstanding, A.M. Best believes that Markel will remain committed to the syndicate operation. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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