A.M. Best Comments on Swiss Re's Ratings Following the Acquisition of GE Insurance Solutions.OLDWICK, NEW JERSEY Oldwick is an unincorporated area within Tewksbury Township in Hunterdon County, New Jersey, United States. The area is served as United States Postal Service ZIP Code 08858. As of the United States 2000 Census, the population for ZIP Code Tabulation Area 08858 was 177. -- A.M. Best Co. has commented that the ratings of Swiss Re Swiss Re is the world’s largest reinsurer, now that it has acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re now operates in more than 30 countries. General Electric owns 8.9% of the firm. Group (Swiss Re) (Switzerland) and its rated entities remain under review with negative implications; however, A.M. Best aims to resolve the under review status within the next four to six weeks, following the announcement that Swiss Re has finalized See finalization. the acquisition of GE Insurance Solutions (excluding U.S. life and health operations). A.M. Best has also commented that the ratings on the newly acquired subsidiaries of GE Insurance Solutions Corporation (Overland Park Overland Park, city (1990 pop. 111,790), Johnson co., NE Kans., a residential suburb of Kansas City; inc. 1960. There is printing and publishing, and the manufacture of apparel, aircraft parts, cement, prepared foods, salt, chemicals, marine accessories, and signs. , KS)--excluding Employers Reassurance Corporation--remain under review with developing implications. These ratings apply to Employers 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. Corporation and GE Reinsurance Corporation (together known as Employers Re Corp. Group), Westport Insurance Corporation and Coregis Insurance Company. The ratings of the main operating entities of the GE Frankona Group (Germany) also remain under review with developing implications. A.M. Best believes that Swiss Re is now in a better position to make decisions about the future business strategy and future structure of the entire group. A.M. Best continues to evaluate the potential impact of this acquisition on Swiss Re's prospective consolidated capitalisation in light of historical significant adverse reserve development at Employers Reinsurance Corporation, although the 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. 3.4 billion reserve strengthening, which has taken place in conjunction with the acquisition, has alleviated some of the concerns. In addition, A.M. Best is continuing to discuss with Swiss Re's management the potential for further adverse reserve developments in Swiss Re's liability portfolio, which in 2005, were mostly compensated by positive developments in other lines of business. A.M. Best's analysis also focuses on catastrophe risk management and the impact of the protection of the recently issued USD 950 million catastrophe bond catastrophe bond A debt security with a payoff tied to the relative severity of a natural disaster such as a hurricane or earthquake. Bondholders are paid with insurance premiums but may have to accept reduced principal repayment in the event the specified on Swiss Re's property catastrophe exposure. A.M. Best's analysis will further concentrate on the relatively high execution risk inherent when merging an operation of this size and complexity, although Swiss Re has demonstrated in the past that it can successfully integrate acquisitions. 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. 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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