A.M. Best Assigns QBE International Insurance Ltd. A -Excellent- Rating.OLDWICK, N.J.--(BUSINESS WIRE)--June 22, 1999-- A.M. Best Co. today assigned an A (Excellent) rating to QBE (Query By Example) A method for describing a database query originally developed by IBM for mainframes. A replica of an empty record is displayed and the search conditions are typed in under their respective columns (fields). International Insurance Ltd. The rating reflects the company's strong solvency position and long-term return on surplus, which has averaged more than 10% over the recent 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. cycle. A.M. Best believes the company has experienced management and underwriting teams and a conservative investment strategy. The company, which operates primarily from London and Paris, has grown its business over the past five years, with 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. increasing from 56.8 million pounds in 1994 to 143.1 million pounds in 1998. During the company's expansion, it has successfully returned underwriting profits Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. until 1998. The rating also reflects the company's strategic role within QBE Insurance QBE Insurance Group Limited ASX: QBE is an Australian based general insurance provider, providing insurance services mainly to the Asia Pacific region, but also America and Europe. It has offices in 44 countries. Group Ltd., one of Australia's largest insurance/reinsurance organisations. The company is a major part of QBE Insurance & 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. (Europe) Ltd., the group's consolidated European operation, which represents 38% of 1998 gross premiums written by QBE Insurance Group Ltd. QBE International Insurance Ltd. in itself represents 36% of the gross premiums written by the consolidated European operations, hence it equals approximately 14% of QBE Insurance Group Ltd. The company's conservative solvency ratio Solvency Ratio One of many ratios used to gauge a company's ability to meet long-term obligations. Notes: Derived by taking a company's net worth and dividing by total assets. See also: Asset, Asset Valuation, Balance Sheet, Fundamental Analysis, Income Statement (capital and surplus to net premiums written) of 119% provides the company with sufficient capacity to expand its book of business in chosen areas. The company has a well-diversified portfolio Well-diversified portfolio A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been with authority to underwrite both direct nonlife insurance and reinsurance business. The company also has excellent geographical spread of business, with an overseas branch in Paris and representative offices in Germany and Poland. It also has shareholdings in companies operating in Hungary and the Ukraine. By-line 1998 gross premiums written included reinsurance (52%); fire and other damage to property (34%); third-party liability (12%); marine (1%); and other/accident and health (1%). The company has recently implemented a divisional structure that includes major risks, treaty, bloodstock bloodstock Noun thoroughbred horses Noun 1. bloodstock - thoroughbred horses (collectively) breed, strain, stock - a special variety of domesticated animals within a species; "he experimented on a particular breed of and private medical insurance. The company benefits from the income stream from QBE Reinsurance (UK) Ltd. Financial flexibility is provided by the immediate U.K. holding company and the ultimate holding company--QBE Insurance Group Ltd. The ultimate holding company had group shareholders' funds of Australian $1.07 billion (U.S. $657 million) as of Dec. 31, 1998. Shareholders have shown their commitment to the company, with capital increasing by 75 million pounds over the past five years. Offsetting these positive factors is the company's 1998 underwriting loss of 14.8 million pounds. In particular, a significant number of catastrophes meant the marine and aviation excess-of-loss business classes were responsible for a major part of the 1998 underwriting loss. Although an underwriting loss was reported in 1998, it is in line with results reported by the company's peers. In addition, the company has shown initiative in introducing a profit-engineering program that should enhance underwriting integrity and develop a continuous process for profit improvement. Because of the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of underwriting earnings and the current position of the underwriting cycle, A.M. Best expects the company's earnings for 1999 to be below the average historic performance of A rated entities. The rating has a stable outlook. 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 www.ambest.com. |
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