A.M. Best Assigns Rating to Tokio Millennium Re Ltd.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 16, 2003 A.M. Best Co. has assigned a financial strength rating of A++ (Superior) to Tokio Millennium Re Ltd. (TMR TMR total mixed ration. TMR 1 Trainable mentally retarded 2 Transmyocardial revascularization, see there ), a Bermuda 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 The Tokio Marine and Fire Insurance Company Ltd (TMF TMF The Motley Fool TMF The Music Factory (TV) TMF Telemanagement Forum TMF Texas Medical Foundation TMF Terminated Merchant File (credit card systems) TMF Trial Master File TMF Thermo-Mechanical Fatigue ), Japan. The rating outlook for both TMR and TMF is negative. The outlook reflects the persistent unfavorable economic conditions challenging TMF in Japan. The rating of TMR reflects the strategic role the company serves and the support it receives from TMF. TMR maintains an extremely strong financial position relative to its expected business needs. Moreover, TMR also enjoys the explicit support of its parent company in the form of an extensive net worth maintenance agreement. TMR has established a growing presence as an innovative catastrophe underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. and manager of insurance risks. A.M. Best views TMR as strategically important to TMF as it helps accomplish the parent's goal of enhancing capital utilization through arranging exchanges of natural catastrophe exposures and 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. uncorrelated risks in the worldwide reinsurance market and by engaging in alternative risk mitigation strategies. As part of TMF, TMR enjoys the benefits of having one of the most recognizable names in the international insurance industry and is able to attract business on a global basis. TMR's conservative investment policy minimizes liquidity and credit risks, which is consistent with the nature of its catastrophe insurance liabilities. Offsetting factors include the company's relatively limited operational experience and the volatility inherent in its catastrophe reinsurance activities. Operating results have been favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. since its inception in early 2000. However, TMR's risk management strategies have yet to be tested by a significant natural catastrophe. Accordingly, TMR's ability to further diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. the risks of the TMF group on a global basis--at acceptable terms--will be affected by global reinsurance market conditions. 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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