A.M. Best Assigns Rating to Evergreen Insurance.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 16, 2001 A.M. Best Co. has assigned an initial financial strength rating of A- (Excellent) to Evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. Insurance Company Ltd. (Evergreen), Hamilton HM JX, Bermuda. This rating reflects the company's excellent 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. , consistently strong operating performance and its unique role as the primary insurance carrier for its ultimate parent, Evergreen Group. These positive rating factors are derived from Evergreen's conservative 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. standards, low cost operating structure and its multiple product line capability. The rating also considers the level of commitment on the part of the Evergreen Group, whose management incorporates Evergreen as an integral component in the overall risk management program of the Group. Moreover, Evergreen gains from its parent's global scope, which provides geographic diversification of risks assumed and strong growth in business opportunities. The captive currently accepts 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. from carefully selected, non-Evergreen Group related risks. These represented approximately 40% of the year 2000 premiums. Partially offsetting these positive rating factors is the company's business concentration, as the lines of insurance coverage provided to the Evergreen Group revolve re·volve v. re·volved, re·volv·ing, re·volves v.intr. 1. To orbit a central point. 2. To turn on an axis; rotate. See Synonyms at turn. 3. predominantly around transportation related operations. This concern is diminished by the diversification strategies of the parent and the inclusion of selected third party business into the captive's portfolio. Additionally, Evergreen has some exposure to earthquakes in the Asia/Pacific region, though the risk is mitigated by policy sublimits, prudent reinsurance, geographic dispersion dispersion, in chemistry dispersion, in chemistry, mixture in which fine particles of one substance are scattered throughout another substance. A dispersion is classed as a suspension, colloid, or solution. of its many assets and management's emphasis on risk control. Another offsetting factor to the rating is the relatively significant percentage of assets loaned to subsidiaries of the Evergreen Group. However, the loans are of a short-term nature, are payable in full with seven days notice and are only extended on an arm's length arm's length adj. the description of an agreement made by two parties freely and independently of each other, and without some special relationship, such as being a relative, having another deal on the side or one party having complete control of the other. basis to those subsidiaries that have demonstrated positive operating results. Overall, Evergreen will benefit from the management experience and market presence of its parent, as well as the captive's adherence to a philosophy of providing a stable market for global insurance and reinsurance for the Evergreen Group and its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . 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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