A.M. Best Downgrades Arig UK To B+, Places Arig Re, Bahrain, Rating of A Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 7, 2000 A.M. Best Co. has downgraded Arig Insurance Co. Ltd., U.K. to B+ (Very Good) from A (Excellent) and placed the A rating of the parent, Arig 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. Co., B.S.C. (c), under review with negative implications. The action follows the Dec. 22, 1999, announcement that Arig UK will immediately cease 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. . The company's move reflects the directors' view that the current competitive environment will reduce opportunities for smaller companies in the short to medium term. Arig UK is expected to contribute about one fourth of Arig Re's consolidated premium income in 1999. Arig Re is an international 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. , registered as a "Bahraini closed shareholding company." It was incorporated on July July: see month. 21, 1998, as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Arab Insurance Group, B.S.C., Bahrain, and became responsible for its reinsurance business retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin from Jan. 1, 1998. Arig Re assumed all related assets and liabilities, including those of Arig Insurance Co. Ltd., U.K., as of that date. The rating of Arig Re will remain under review until the impact on its financial strength has been assessed. Any impact will be the result of 1999 losses from the run-off of Arig UK. 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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