A.M. Best Assigns Initial Ratings to The Citadel General and L'Unique Compagnie.Business Editors A.M. Best Co. has assigned initial financial strength ratings of B++ (Very Good) to The Citadel General Assurance Company, Toronto, Ontario, and L'Unique Compagnie d'Assurances Generales, Quebec. These companies are the Canadian subsidiaries of Winterthur Insurance Group, the insurance arm of Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Group. A.M. Best views The Citadel and L'Unique as separately capitalized entities given the business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets are not strategically integrated with that of their parent. The rating outlook for both companies is stable. The rating for The Citadel reflects good stand-alone capitalization and geographic diversification. The Citadel's level of capital supports 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. and investment activities. Capitalization has been maintained through a lack of significant dividend obligations to its parent and through substantial realized capital gains. Additionally, underwriting risk is distributed throughout Canada. The company's current strategy is to focus on providing specialized commercial package policies to selected industries, while maintaining their strong position in the group accidental death and dismemberment dismemberment /dis·mem·ber·ment/ (dis-mem´ber-ment) amputation of a limb or a portion of it. dismemberment amputation of a limb or a portion of it. market. Offsetting these factors are deteriorating operating results and adverse development. Underwriting losses were not counter balanced in 2001 due to weak investment markets resulting in a net loss. In combination with reserve deficiencies reserve deficiency A shortage in funds set aside as a reserve for a specific purpose. For example, during a recession a firm may find the reserve fund covering allowance for bad debts deficient when the amount of bad debts exceeds expectations. surplus was negatively impacted. A.M. Best believes the Citadel will be challenged to improve operating results while executing their commercial niche strategy. The rating for L'Unique reflects good stand-alone capitalization and strong operating results. Consistent growth in surplus is attributable to profitable underwriting results facilitated by a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. regulatory climate regulatory climate The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. in the province of Quebec. Offsetting these factors is L'Unique's concentration in Quebec causing exposure to competitive pressures and possible regulatory changes. 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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