A.M. Best Comments Upon B++ Rating of Alliance International Reinsurance.Business Editors & Insurance Writers OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 2, 2001 The financial strength rating of Alliance International 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 (Alliance Re), Cyprus, reflects the company's strong initial capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper , experienced executive team and proposed operation in select geographical regions as a property/casualty reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. . It also considers management's track record as operating as a managing general agent since 1995, its 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. systems capability and the support for the venture that has been provided thus far by brokers and clients. The company was originally awarded the rating, taking into account two timing issues. Alliance Re has successfully satisfied one issue--that its outwards reinsurance programme was fully placed in line with the company's business plan. The second timing issue concerns the capital of the company being fully paid up upon listing on the Cyprus Stock Exchange The Cyprus Stock Exchange or CSE (Greek: Χρηματιστήριο Αξιών Κύπρου or ΧΑΚ) is a stock exchange located in Nicosia, Cyprus. (CSE (Certified Systems Engineer) See Microsoft certification. ). The listing on the CSE, expected to be completed by the end of 2000, has been delayed due to a backlog of applications. The listing is now likely to be completed by March 2001. Nevertheless, Alliance Re has increased shareholders' funds to CYP CYP In currencies, this is the abbreviation for the Cyprus Pound. 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. 31.3 million (US $51.5 million) as at 31 December 2000. A.M. Best believes management will build on and maintain existing relationships in Asia, Europe and Africa, providing a foundation on which to develop the business going forward. A.M. Best further believes the company will benefit from improving market conditions that are likely to progress further during 2001. Once the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. and private placement have been completed, Alliance Re's shareholders' funds will be at least CYP 37 million (US $61 million). This is considered adequate in view of the planned business volumes and the fact that the company will remain debt-free for the foreseeable future. Alliance Re plans to follow a conservative investment policy and will continue to use a comprehensive reinsurance programme provided by highly rated well-established reinsurers. The rating also reflects the inevitable uncertainties surrounding any start-up venture and the consequent lack of a track record as a risk carrier. Accordingly, the rating process has included an in-depth assessment of the management's ability to meet the business plan. As a consequence, adherence to the business plan and the company's ability to meet its detailed commitments will be primary drivers of the rating in the future. 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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