A.M. Best Assigns Rating to Eastern Re Ltd., SPC.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of "a-" to Eastern Re Ltd. SPC 1. (business) SPC - Statistical Process Control. Something to do with quality management. 2. (body) SPC - Software Productivity Centre. 3. (company) SPC - Software Publishing Corporation. 4. (Eastern Re) (Grand Cayman, Cayman Islands). Both ratings have a stable outlook. The rating recognizes Eastern Re's strategic affiliation with Eastern Alliance Insurance Group (EAIG EAIG European Automotive Initiative Group ), an indirect subsidiary of Eastern Insurance Holdings, Inc. (EIHI EIHI Eastern Insurance Holdings, Inc (Lancaster, Pennsylvania; stock symbol) ) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : EIHI) (both of Lancaster, PA), its consistently profitable operating results and sound stand-alone capitalization. These positive rating factors are partially offset by Eastern Re's reliance on EAIG for producing the majority of its assumed 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. business. Eastern Re also participates as an assuming company in reinsurance treaties related to non-workers' compensation business with an unaffiliated insurance company. Eastern Re, an indirect wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of EIHI, is a segregated portfolio company A segregated portfolio company (or SPC), sometimes referred to as a protected cell company, is a company which segregates the assets and liabilities of different classes (or sometimes series) of shares from each other and from the general assets of the SPC. , or cell captive. Agencies, associations and group captive programs are able to participate in the financial results of an individual segregated portfolio cell (SPC) through ownership of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. issued by Eastern Re. This dynamic provides added incentive to the agency or group captive to prevent adverse selection for the business being assumed by the SPCs at Eastern Re. Currently, Eastern Re has 11 SPCs. Eastern Re's operating performance has outperformed the workers' compensation industry by a significant margin over the last five years, due in particular to loss and loss adjustment expenses ratios that have been significantly below the workers' compensation composite. Pennsylvania domiciled EAIG consists of Eastern Alliance Insurance Company (Eastern Alliance) and Allied Eastern Indemnity Company (Allied Eastern), both of which are workers' compensation insurance companies and Employers Alliance, Inc. (Employers Alliance), a third party administration company. Eastern Alliance and Allied Eastern are risk-bearing entities that provide fronting services to the SPC at Eastern Re, and Employers Alliance provides claims administration and risk management services to the SPCs. EAIG is currently rated A- (Excellent) and has net assets in excess of $40 million. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings and independent data on the captive and alternative insurance market, please visit 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 www.ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion