A.M. Best Assigns Rating to Jupiter Insurance Ltd, Guernsey.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 16, 2002 A.M. Best Co. has assigned a financial strength rating of A+ (Superior) to Jupiter Insurance Ltd, Guernsey. The rating outlook is stable. The rating is based upon the captive's superior capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper and excellent operating performance. Jupiter forms an integral part of the global risk management programme for its ultimate parent, British Petroleum plc, providing necessary insurance coverage. An offsetting factor is the lack of business diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. driven by Jupiter's status as a single parent captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. . Superior capitalisation--Based upon A.M. Best's risk adjusted capital model, Jupiter has a superior capital position. The captive could absorb up to four maximum losses of GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 250 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 375 million) in one year and maintain sufficient capital at the superior rating level to support prospective premium growth. A.M. Best recognises Jupiter's key role in facilitating the on-going business of BP plc through provision of insurance protection. Excellent operating performance--Jupiter has a five year ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. (Return on Equity) of 8.0% (8.3% in 2001), benefiting from BP's highly effective risk management approach, despite an inherently volatile book of business. Investment return is strong, although likely to decline slightly in 2002 due to lower income on a discount note held with BP International Ltd--93% of the investment portfolio. Prospectively, operating performance will remain excellent in 2002 and 2003 with an ROE of between 10% - 15% respectively. Limited business profile--Jupiter's sole source of premiums is through BP affiliates and there are no plans to extend coverage to third party risks. Its business profile is therefore intrinsically linked to its parent's market position. Business development is restricted by BP's philosophy to only insure Insure can mean:
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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