A.M. Best Comments on XL Capital Group Reserve Charge.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 21, 2003 A.M. Best Co. has commented that the financial strength rating of A+ (Superior) of XL Capital Group (Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda) and its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. remains unaffected following the recently announced $184 million pre-tax charge to cover prior year North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. casualty line 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. losses. Also unaffected are the debt ratings of XL Capital Ltd. XL Capital's reserve strengthening relative to former NAC See network access control. Reinsurance Corp's casualty business for accident years 1997 to 2000, falls within A.M. Best's anticipated range with risk-adjusted capital remaining at a superior level following the prior period charge. The risk-adjusted capital of XL Reinsurance America Group (XLRAG) (Delaware) and its members also remains in the superior range following the reserve strengthening--although at a less robust level as compared to prior periods--due in large part to the group's accelerated premium growth over the past two years. XLRAG remains core to XL Capital's business strategy representing approximately one-third of gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. at June 30, 2003. Furthermore, XLRAG enjoys explicit support from its Bermuda parent through direct capital contributions and substantial affiliated reinsurance. XL Capital's management recently announced an in-depth review of ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. company claims for U.S. casualty business accident years 1997 to 2000. The review is expected to be completed by year-end. While A. M. Best's view of XL Capital's capital adequacy already contemplates some degree of additional adverse reserve development, the impact of any further reserve strengthening on the rating of XL Capital and its U.S. subsidiaries will be reassessed. 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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