A.M. Best Downgrades Rating of The Underwriter Insurance Company Limited.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--May 20, 2003 A.M. Best Co. has downgraded the financial strength rating to B+ (Very Good) from B++ (Very Good) of The Underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. Insurance Company Limited (TU), United Kingdom. The outlook remains negative. The downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. to B++ on April 8, 2003, was based on the assumption that there would be no further deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the capital base. Today's downgrade reflects A.M. Best's understanding that TU's loss reserves will require further significant strengthening. As a result of the reserve strengthening, TU's capital position will deteriorate to approximately GBP GBP In currencies, this is the abbreviation for the British Pound. 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. 45 million (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. 67 million) (a decline of more than 40% from year 2000 levels). TU has revised its business strategy and introduced a wide range of measures to restructure the composition and risk profile of the portfolio, reduce expenses and enhance 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. control. Management has commented that they will not be receiving a capital injection from existing shareholders in the short term. Expectations: -- Maintenance of the B+ rating is based on A.M. Best's expectations that there will be no further deterioration in TU's capital base and the successful implementation of the revised business strategy. 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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