A.M. Best Downgrades Rating of Overseas Partners and Its Subsidiaries.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--May 31, 2002 A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A (Excellent) of Overseas Partners Ltd. (OPL OPL Open Publication License OPL Olympus Product Line (Sun) OPL outer plexiform layer OPL Organiser Programming Language (PSION) OPL On-Premise Laundry OPL Optical Path Length OPL Open Public License ) Bermuda, and removed the company from under review. This rating applies to the following subsidiaries: Overseas Partners Re Limited (OP Re), Bermuda, Overseas Partners US 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 (OPUS), Delaware and Overseas Partners Assurance Ltd. (OPAL opal (ō`pəl), a mineral consisting of poorly crystalline to amorphous silica, SiO2·nH2O; the water content is quite variable but usually ranges from 3% to 10%. ), Bermuda. In February 2002, A.M. Best placed the rating under review with negative implications as a result of the board of directors' announcement that it would begin an orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. run off of most of OPL's operations with the objective of preserving the value of shareholder investments while supporting liquidity requirements. Since that announcement, the company has retained key senior management positions and has implemented a conservative strategy with regards to supporting its policyholders obligations. Additionally, OPL has sold off its property catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). 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. , Overseas Partners Cat Limited, to Renaissance Re and has made significant progress in liquidating some of its real estate holdings. Furthermore, management continues to work towards effecting the sale of OPUS and is currently working with an interested party to agree to final terms and conditions. The rating reflects A.M. Best's view that the overall capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of the group with $1.3 billion of shareholders equity is adequate to support the run off of its liabilities, which include $1.7 billion of carried loss reserves. Moreover, OPL's run off plans indicate that it will withdraw capital prudently and maintain shareholders equity at a level that meets or exceeds its carried loss reserve position. A.M. Best will continue to monitor the adequacy of OPL's loss reserves and capitalization. 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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