A.M. Best Assigns Rating to Generali USA Life Re.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 2, 2003 A.M. Best Co. has assigned an initial financial strength rating of A (Excellent) to Generali USA Life Reassurance Company (Generali Life Re) (Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , MO). The rating outlook is stable. The company is the U.S. life 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. subsidiary of its ultimate parent, Generali - Assicurazioni Generali Assicurazioni Generali S.P.A. is the largest insurance company of Italy.[1] It is headquartered in Trieste. Under the name of Imperial Regia Privilegiata Compagnia di Assicurazioni Generali Austro-Italiche, the company was founded on December 26, 1831. S.p.A. (Generali Italy), the leading life insurance group in Italy based upon market share and Europe's largest insurance group by market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . The rating reflects Generali Life Re's strategic role as the U.S. life reinsurance arm of its ultimate parent, Generali Italy. The rating also reflects the company's U.S. life reinsurance market position, which has been developed through its former Business Men's Assurance Company of America (BMA BMA British Medical Association. ) franchise, and its adequate 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. . During second quarter 2003, the life reinsurance business from the former BMA entity was transferred to Generali Life Re. Generali Life Re was initially capitalized at $200 million, which was funded by a cash infusion from Generali Italy. Generali Life Re (through BMA) has demonstrated a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. track record in life reinsurance through continued business growth and maintenance of relationships with major direct life writers. Its adequate capitalization is further supported by internal retrocessions within the Generali Group. These strengths are partially offset by the competitive U.S. life reinsurance market, which has become more challenging because of the recent consolidation in this segment. In addition, the current low interest rate environment may present a challenge for Generali Life Re to generate favorable investment income as the company deploys its initial $550 million cash position into appropriate asset classes. 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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