A.M. Best Assigns Rating to Transmarine Insurance Company Ltd.Business Editors/Insurance Writers OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 3, 2003 A.M. Best Co. has assigned a financial strength rating of B++ (Very Good) to Transmarine trans·ma·rine adj. 1. Crossing the sea. 2. Beyond or coming from across the sea. [Latin tr Insurance Company Ltd, Liechtenstein. The rating outlook is stable. The rating reflects the company's superior risk-based capitalisation and very good operating performance. This is offset by the concentration risk associated with Transmarine's small size and specialisation and significant reliance upon 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. protection. Superior capitalisation -- Although small on an absolute basis (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. 15.7 million), capitalisation is superior on a risk-adjusted basis as the company has a very low retention level (3.7%). Transmarine is privately-owned and has no financial leverage. Very good operating performance -- Transmarine's underwriting and bottom line performance has been positive in all but one of the last six years. The five-year average combined ratio is an excellent 45%, reflecting cautious underwriting. Transmarine underwrites 100% of risks accepted through its Belgium-based immediate parent and managing general agent, Group BUO BUO Biblioteca de la Universidad de Oviedo BUO Brown University Orchestra BUO Bogazici Universitesi Oyunculari (avant-garde theatre group at Bogazici University, Turkey) . Concentration risk -- Transmarine, a specialist underwriter of marine cargo risks, lacks business diversification. Its small size has restricted the number of brokers that place business with the company. Exceptionally small net underwriting account -- Transmarine retains a very low portion of its gross premium (3.7% in 2002). Whilst this affords significant protection to the capital, Transmarine is highly exposed to cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. changes in pricing and availability of reinsurance capacity. In addition, its retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. programme is highly concentrated in one company that has an 85% quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). and excess of loss protection. A.M. Best does not expect management to significantly increase retention levels in the short term, whilst sufficient high quality capacity remains available and affordable. However, as the business expands, it is expected that Transmarine will increase its net retention level. 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. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion