A.M. Best Assigns Rating to First British American Reinsurance Company.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of A+ (Superior) to First British American 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. Company (FBARC) (Charleston, SC). The rating outlook is stable. FBARC, a South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. Special Purpose Financial Captive, was formed to absorb Triple X reserve strain for guaranteed level term life products from Legal & General America, Inc. (LGA LGA abbr. large for gestational age LGA Large for gestational age, see there ). LGA is comprised of Banner Life Insurance Company (Rockville, MD) and William Penn Life Insurance Company of New York (Garden City, Long Island), whose financial strength ratings of A+ (Superior) are unaffected. LGA is a 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 Legal & General Group plc, a leading U.K.-based financial services organization. FBARC was created for the purpose of using the capital markets to fund the growing Triple X reserve requirements within LGA. Furthermore, this securitization allows LGA to avoid letter of credit capacity/pricing concerns since FBARC collateralizes its obligations to LGA by placing funds in a separate reserve credit trust. FBARC's issuance of surplus notes is funded using money market securities wrapped by a AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. financial guarantor. A.M. Best views this transaction as a reasonable mechanism to proactively address the "humpbacked hump·back n. 1. See hunchback. 2. A humped upper back. 3. A humpback whale. hump " capital strain over time, driven by future reserving requirements for guaranteed level term life products. A.M. Best believes FBARC's capitalization is more than sufficient to meet any obligations for the excess statutory reserves being assumed from LGA. 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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