A.M. Best Assigns Rating to W. R. Berkley Insurance -Europe-, Limited.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 16, 2003 A.M. Best Co. has assigned a financial strength rating of A (Excellent) to W. R. Berkley W.R. Berkley NYSE: BER is a Fortune 500 company founded in 1967, and based in Greenwich, Connecticut. It is one of the nation’s premier commercial lines property casualty insurance providers. Insurance (Europe), Limited (WRB), United Kingdom. The outlook is stable. This newly established company was created by W. R. Berkley Corporation (WRBC WRBC W R Berkley Corporation ) and Kiln kiln (kĭl, kĭln), furnace for firing pottery and enamels, for making brick, charcoal, lime, and cement, for roasting ores, and for drying various substances (e.g., lumber, chemicals). plc to write professional indemnity insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments . The initial capitalisation of the company is 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. 80 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. 133 million), 80% provided by WRBC and the remaining 20% provided by Kiln plc. The rating benefits from explicit support in the form of a net worth maintenance agreement provided by the ultimate parent. It also reflects WRB's excellent initial capitalisation, its highly experienced management team, strong prospective financial performance and long-standing relationships with brokers in the London market. Offsetting factors are the logistical issues associated with establishing a new operation. Excellent risk-based capitalisation--According to A.M. Best's risk-adjusted capital model, capitalisation will be maintained at an excellent level. A.M. Best expects the company to grow its capital base through the retention of earnings, with no additional capital-raising being envisaged for the near future. A.M. Best expects the company to employ a conservative investment policy ensuring strong levels of liquidity. Very good business profile--Gross premium income for 2004, the first full year of operation, is expected to be in excess of GBP 60 million (USD 100 million). The book will consist primarily of professional indemnity (over 80% of the total book) and general liability business, the majority of which will emanate em·a·nate intr. & tr.v. em·a·nat·ed, em·a·nat·ing, em·a·nates To come or send forth, as from a source: light that emanated from a lamp; a stove that emanated a steady heat. from the United Kingdom. Strong prospective financial performance--A.M. Best expects WRB's financial performance to be excellent, taking into account the current shortage of professional indemnity capacity in the U.K. market and anticipated gradual stabilisation of rates for professional indemnity in the United Kingdom over the next few years. A.M. Best's projections also reflect the track record of the current management 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. team for the proposed lines. Logistical issues--The establishment of a new operation is likely to present significant challenges for the management team, with coordination required across all administrative activities, most of which will be outsourced. Expectations: -- WRB will build up gross premium volumes in the short term, while maintaining a risk-adjusted capital base commensurate with the company's rating level. -- A.M. Best believes WRB will maintain a conservative 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. strategy based on a programme as indicated in its business plan. -- A.M. Best will closely monitor the development of WRB's operations, giving attention to its adherence to its business plan and the development of the operational infrastructure. 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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