A.M. Best Assigns an A Rating To Steamship Mutual Underwriting Association.Business Editors OLDWICK, N.J., U.S.A.--(BUSINESS WIRE)--Jan. 18, 2000 A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. an A (Excellent) rating to Steamship steamship, watercraft propelled by a steam engine or a steam turbine. Early Steam-powered Ships Marquis Claude de Jouffroy d'Abbans is generally credited with the first experimentally successful application of steam power to navigation; in 1783 his Mutual 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. Association (Bermuda) Ltd., a leading protection and indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. (P&I) club. The rating reflects Steamship Mutual's competitive market position, secure capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and strong 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. program. Management has been proactive in establishing new business ventures and launching innovative products, and A.M. Best believes this trend will continue despite competitive market conditions. Steamship Mutual has successfully developed a global business spread and created a well-structured portfolio on a business-line basis. It also continues to place great emphasis on service--a focus that differentiates the club from many of its peers and the commercial market. The strength of its relationships with the broker network and its club members, the shipowners, is another competitive advantage. Existing capital levels are secure, and the rating recognizes the fundamental strength of the mutual structure of the club, backed by potential access to additional funds through calls on its members, were the need to arise. A.M. Best views the recent announcement of modifications to the call process and a new long-term reinsurance facility which protects the club against the need to make additional calls on members as positive developments. Business is further supported by Steamship Mutual's membership in the International Group Pool and the protection and influence this extensive reinsurance facility provides. Offsetting rating factors include the increasingly competitive landscape of the P&I industry and commercial marine market as a consequence of demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. and consolidation trends. Competitive pressures from fixed-premium providers, notably with regard to rates, also are prevalent. A.M Best believes Steamship is well positioned to cope with the current market environment and has the financial and operating strength and market profile to build upon its leading position in the P&I market. 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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