A.M. Best Assigns Rating to AHS Insurance Company, Ltd.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of B++ (Very Good) to AHS AHS Assistant House Surgeon. Insurance Company, Ltd. (AHS) (Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. ). The rating outlook is stable. The rating reflects AHS's very good 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. , experienced management team and sound 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 risk management programs. Partially offsetting these positive rating factors are AHS's limited business scope and high retention levels. Additional factors considered in this rating include the explicit support of the captive's parent, Atlantic Health System, Inc., and the strategic importance of AHS within this system. AHS's risk management program uses a proactive approach for identifying, minimizing and managing claims. The program's effectiveness is continuously monitored, and adjustments are made when necessary. The rating also considers the important role AHS serves in providing professional and general liability insurance for Atlantic Health System, Inc. The rating of AHS is further supported by the financial strength of the parent and the largest subsidiary within the system, AHS Hospital Corporation. The hospital corporation has strong liquidity with adequate days cash on hand and a low debt-to-capitalization ratio. In addition, the hospital corporation has a strong debt service coverage and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. payer mix payer mix Medical practice The type–eg, Medicaid, Medicare, indeminity insurance, managed care–of monies received by a medical practice. Cf Patient mix, Service mix. . Earnings have been positive for several years, though on a declining trend. A.M. Best believes the rating support will continue given the persistence of current levels of earnings and liquidity. For Best's Ratings 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. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings and independent data on the captive and alternative insurance market, please visit http://www.ambest.com/captive/. 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 http://www.ambest.com. |
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