A.M. Best Assigns Ratings to GNY Custom Insurance Company and Affirms and Assigns Ratings to Greater New York Group.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A+ (Superior) and an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aa-" to GNY GNY Gamble Nippert YMCA (Cincinnati, Ohio) Custom Insurance Company (Custom) (Phoenix, AZ). A.M. Best has also affirmed the FSR of A+ (Superior) and assigned ICRs of "aa-" to the Greater New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Group (GNY Group) and its members. The GNY Group consists of Greater New York Mutual Insurance Company (GNY Mutual) (New York, NY) and its three wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Insurance Company of Greater New York, Strathmore Insurance Company (both of New York, NY) and Custom. The outlook for all ratings is stable. Custom is a wholly owned subsidiary of GNY Mutual and was established to write non-admitted commercial property/casualty business offering multi-line excess and surplus (E&S) insurance coverages in multiple regional markets, utilizing the E&S distribution channels. The targeted businesses include habitational and student housing, restaurant with entertainment, seasonal hotels and motels and artisan contractor exposures. Custom's infrastructure, including underwriting, claims handling and systems, will all be handled through GNY Mutual with an experienced E&S executive running the E&S operations with experienced E&S underwriters. Underwriting activities are expected to begin in mid-2007. Custom is well capitalized for anticipated underwriting commitments, with significant support provided by GNY Mutual through a 90% quota share reinsurance treaty, whereby Custom will cede 100% of its gross premiums, losses and expenses to GNY Mutual. GNY Mutual will then retrocede ret·ro·cede v. ret·ro·ced·ed, ret·ro·ced·ing, ret·ro·cedes v.intr. To go back; recede. v.tr. To cede or give back (a territory, for example); return. 10% of this same business, after third party 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, back to Custom. As a result, Custom shares GNY Mutual's A.M. Best ratings. The rating actions taken on the GNY Group reflect its strong capitalization and solid operating results as well as the numerous risk management actions taken in recent years to reduce GNY Group's exposure to terrorism loss as well as past adverse loss reserve development. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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