A.M. Best Comments on its Ratings Subsequent to the World Trade Center Verdict.OLDWICK, N.J. -- After a preliminary assessment of the impact of the recently announced verdict that the 9/11 attack on the World Trade Center was two insurable events, A.M. Best Co. does not believe this decision, itself, will result in any rating changes for the nine insurers affected (see list below), or for their reinsurers. The two occurrence verdict will result in an additional $1.1 billion of losses for the named insurers and their reinsurers. Most of the affected carriers have commented that the verdict will have minimal or no impact on 2004 earnings. However, had the verdict been favorable to the insurers, reserves previously held for this potential decision could have been allocated elsewhere or added to earnings. In addition, Best notes that those insurers that did not hold reserves for this outcome may incur a charge to earnings and/or a reduction in their financial flexibility related to their ability to fortify for·ti·fy v. for·ti·fied, for·ti·fy·ing, for·ti·fies v.tr. To make strong, as: a. To strengthen and secure (a position) with fortifications. b. To reinforce by adding material. other potential weaknesses in the balance sheet. Despite these potential impacts, given the diversification of the losses, the strength of the companies affected and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , their favourable 2004 earnings to date--including the significant weather events--the overall financial strength of each of these companies remains supportive of the assigned ratings. The nine insurers involved are: Allianz Global Risks United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Insurance Company., a subsidiary of Allianz A.G.; Travelers Indemnity Company and Gulf Insurance Company, both now part of St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery Travelers Companies. Inc.; General Electric subsidiary Industrial Risk Insurers; Royal Indemnity Company, an affiliate of Royal & Sun Alliance Insurance Group plc; Fairfax Financial Holdings Fairfax Financial Holdings Limited TSX: FFH.SV NYSE: FFH is a Toronto, Ontario based financial services holding company which, through its subsidiaries, is engaged in property, casualty and life insurance and reinsurance, investment management and insurance claims Ltd.'s TIG n. 1. A game among children. See Tag. 2. A capacious, flat-bottomed drinking cup, generally with four handles, formerly used for passing around the table at convivial entertainment. Insurance Company; Tokio Marine & Fire Insurance Company, a unit of Millea Holdings Inc.; Twin City Fire Insurance Company, a subsidiary of Hartford Financial Services Group Inc.; and Zurich American Insurance Company, a unit of Zurich Financial Services Zurich Financial Services Group is a major financial services group based in Zurich, Switzerland. Global operations North America The US consumer market is served primarily by Farmers Insurance Group the third largest personal lines property & casualty insurance Group. 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 http://www.ambest.com. |
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