A.M. Best Assigns Ratings to New Castle Reinsurance Company Ltd.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- (Excellent) and an issuer credit rating of "a-" to New Castle 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. Company Ltd. (New Castle Re) (Bermuda). Both ratings have been assigned a stable outlook. The investors in New Castle Re are funds managed by Citadel Investment Group Citadel Investment Group is a $13.4 billion [1] hedge fund based in Chicago, Illinois, founded by billionaire trader Kenneth C. Griffin. It is one of the world's largest hedge funds. L.L.C. (Citadel), one of the world's largest alternative investment firms. New Castle Re will operate independently as a Bermuda-based property catastrophe company, offering clients coverage on a worldwide basis through the broker market. The initial rating reflects New Castle's solid capitalization, experienced management team as well as financial and administrative support provided by Citadel. In addition to meeting A.M. Best's previously established requirements for new company formations, the initial rating assignment of New Castle Re also reflects the company's ability to meet A.M. Best's stricter risk-based capital requirements Risk-Based Capital Requirement A stated requirement of liquid reserves placed upon banks and institutions that deal in risky ventures. Notes: These requirements exist for the protection of investors who hold an interest in these types of businesses. for property catastrophe companies. These more stringent requirements, which could result in fewer initial ratings in the Excellent range, require a more conservative level of risk-based capital to support a company's assigned rating. Additionally, New Castle Re's risk-based capital will be further enhanced by a support agreement from its investors. New Castle will be capitalized with $500 million and plans to provide property-per-risk, workers' comp catastrophe and terrorism coverage in addition to its core property catastrophe line of business. Planned geographic areas of coverage include the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , United Kingdom, Japan, Caribbean and Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . New Castle Re is led by Christopher R. McKeown, chief executive officer, with over twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. of experience in the reinsurance/insurance industry. Until last year, Mr. McKeown was president and chief executive officer of ACE Tempest Reinsurance Company and is currently president and chief executive officer of CIG CIG Ceiling (height above ground level to base of clouds) CIG Conference Intergouvernementale (French: Intergovermental Conference) CIG Conservation Innovation Grants (USDA NRCS) Reinsurance Company (CIG Re), Citadel's existing insurance franchise (not rated by A.M. Best). New Castle Re's operating strategy will complement CIG Re's profile as a Bermuda-based property catastrophe reinsurance writer offering clients coverage on a fully collateralized basis. In addition to being susceptible to low frequency, high severity events, A.M. Best anticipates that New Castle Re will be challenged by increased competition from both established companies and potential new start-ups seeking to enter the industry. The additional capacity brought to the market could dampen expected returns Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: if pricing of reinsurance coverage fails to meet anticipated levels. Furthermore, the ability of New Castle Re to effectively build and retain market acceptance will only be proven over time. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit www.ambest.com/reinsurance. 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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