A.M. Best Co. Assigns Initial Rating to AXIS Specialty Limited.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 5, 2001 A.M. Best Co. has assigned an initial financial strength rating of A- (Excellent) to AXIS Specialty Limited, Bermuda. The company, formed in response to the market dislocation dislocation, displacement of a body part, usually a bone. When a bone is dislocated, the ends of opposing bones are usually forced out of connection with one another. In the process, bruising of tissues and tearing of ligaments may occur. in the global insurance and 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. markets following the September 11 terrorist attacks, has been capitalized with $1.7 billion through a private placement equity offering led by Trident II, L.P., a private equity fund managed by MMC See MultiMediaCard and Microsoft Management Console. Capital, Inc. AXIS Specialty seeks to establish a diversified worldwide book of business focused on short-tail lines, principally property, catastrophe, aviation and marine reinsurance along with primary specialty lines in property, marine, energy and space lines of business. The rating reflects AXIS Specialty's strong initial capital base, experienced management team and strong sponsorship. AXIS Specialty will be led by John Charman John R Charman (born 1953), is an English businessman, who has made his career in insurance. He is currently CEO/President/Director at Bermuda based Axis Capital Holdings Ltd. , president and chief executive officer, with 30 years of insurance industry experience and a demonstrated track record for producing strong results. Serving as chairman is Robert J. Newhouse, Jr., formerly with Mid Ocean and Marsh & McLennan Companies, Inc. Both bring to AXIS Specialty years of successful 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. and management expertise. A.M. Best expects management to establish strong underwriting and risk management controls to ensure pricing discipline and controlled exposure aggregates. These strengths are offset by the challenges associated with a start-up company start-up company A new business. . Additionally, new capital has rapidly entered the industry and could potentially dampen expected returns Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: as pricing fails to meet anticipated levels. A.M. Best will closely monitor AXIS Specialty's operations over the near-term to ensure rating expectations are achieved. 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 |
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