A.M. Best Assigns Ratings to Interglobal Insurance Company Limited.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of B++ (Good) and an issuer credit rating of "bbb" to Interglobal Insurance Company Limited (IIC See infranet. ) (United Kingdom). The outlook for both ratings is stable. The ratings reflect the strong risk-adjusted capitalisation, low loss ratio and volatility of the business that will be written by IIC. Offsetting factors are the company's modest size and business position. A.M. Best believes that initial capital of 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. 32.5 million and likely future retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. will provide IIC with a strong risk adjusted-capitalisation. A.M. Best believes that IIC's future financial performance will be good based on the performance of the existing account written by InterGlobal Limited (a managing general agency) (IL). This account is comprised exclusively of international private Medical insurance, and it will now be written by IIC. A.M. Best anticipates that IIC will achieve net loss ratios in the range of 55% to 60%. However, the relatively small size of the underwritten portfolio combined with exposures to some war zones may result in further increases in combined ratio during the early years of the operations. Although A.M. Best believes IIC's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are likely to be high, the company is expected to maintain a combined ratio below 100%, supporting underwriting profits Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. from 2008. While A.M. Best believes IIC may not achieve its initial objectives for premium volumes, the maximum likely levels have been factored into analysis, and the company's anticipated performance has been extensively stress tested A.M. Best believes that IIC will benefit from the profile of the InterGlobal brand in the Middle East and Asian markets developed by IL. IIC will continue to develop the existing IL portfolio of international private medical insurance. Nevertheless, business volumes are expected to be modest with gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. likely to be below USD 30 million in 2007 in the company's first year of operation but may potentially exceed USD 60 million in 2008. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , 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 The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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