A.M. Best Downgrades Ratings of Commercial Risk Partners.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 3, 2003 A.M. Best Co. has downgraded the financial strength ratings to B (Fair) from B+ (Very Good) of Commercial Risk 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 Limited (Hamilton, Bermuda) and its U.S. subsidiary, Commercial Risk Re-Insurance Company (Burlington, VT), together known as Commercial Risk Partners. The companies are the insurance operating subsidiaries of the Bermudian holding company, Commercial Risk Partners Limited (CRP C-reactive protein (CRP) A protein present in blood serum in various abnormal states, like inflammation. Mentioned in: Pelvic Inflammatory Disease CRP, n.pr See C-reactive protein. ), ultimately wholly-owned by SCOR SCOR Scientific Committee on Oceanic Research SCOR Supply Chain Operations Reference model SCOR Small Corporate Offering Registration SCOR Specialized Center of Research (White Plains, NY) SCOR Second Cousin Once Removed (Paris, France). The rating outlook for both companies has been changed to stable from negative. These rating actions reflect the precipitous decline in capital of Commercial Risk Partners in the third quarter of 2003, resulting from further reserve strengthening during the quarter combined with a decline in unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. which together have reduced the company's risk-adjusted capital to a level that no longer supports a secure rating. These actions have also taken into consideration weak historical and prospective operating performance as well as the limited market profile due to the runoff Runoff The procedure of printing the end-of-day prices for every stock on an exchange onto ticker tape. Notes: If the "tape is late" then it can take a long time to print off all the closing prices. status of both companies. The rating is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent A.M. Best's expectation that a commutation contract that has already been negotiated will be finalized by the end of 2003 and that Commercial Risk Partners will maintain consolidated risk-adjusted capital commensurate with its Fair rating. Subsequent rating actions may be warranted if these expectations are not met or maintained. 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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