A.M. Best Downgrades Ratings of Converium AG and Converium Reinsurance -North America- Inc.OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A- (Excellent) of Converium AG (Switzerland) and certain rated subsidiaries (collectively referred to as Converium Group). A.M. Best has also downgraded the issuer credit rating to "bbb" from "a-". The issuer credit ratings on each of these companies reflect A.M. Best's opinion, expressed on the credit market scale, of Converium's overall ability to meet its senior obligations, which are insurance policies; hence both ratings (issuer credit and financial strength ratings) are at the same level. Concurrently, A.M. Best has downgraded all rated debt issues accordingly. (See full list of ratings below). The ratings remain under review with negative implications pending the successful raising of the proposed 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. 420 million via a share issue, which is in the process of being underwritten. At the same time, A.M. Best has downgraded the financial strength rating to B- (Fair) from A- (Excellent) and the issuer credit rating to "bb-" from "a-" of Converium 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. (North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ) Inc. following the announcement that it is to be placed into run off. This rating has been removed from under review and a negative outlook has been assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. . These rating actions follow the under review with negative implications status under which all Converium ratings were placed on July 20, 2004, following the release of 2004 half-year results, which were below expectations primarily due to the need to strengthen reserves by USD 400 million on U.S. casualty losses related to the 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. years 1997 to 2001. The downgrades reflect the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of Converium's consolidated risk-based capital due to the potential for further reserves development, despite Converium's intention to further bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz its reserves by between USD 50 million and USD 100 million before year-end 2004 and the acquisition of a stop-loss agreement with National Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. . The ratings also factor the planned reduction of consolidated premiums and the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. , as well as the successful raising of the proposed USD 420 million via a share issue. The financial strength rating has been downgraded to B++ (Very Good) from A- (Excellent) and the issuer credit rating to "bbb" from "a-" for the following companies: --Converium AG --Converium Rueckversicherung (Deutschland) AG --Converium Insurance (North America) Inc. --Converium Insurance (UK) Ltd The financial strength rating of Converium Reinsurance (North America) Inc. has been downgraded to B- (Fair) from A- (Excellent) and the issuer credit rating to "bb-" from "a-". The issuer credit rating of Converium Finance S.A. has been downgraded to "bb+ from "bbb-". The issuer credit rating of Converium Holdings (North America) Inc. has been downgraded to "bb-" from "bb+". The following debt rating has been downgraded to "bb+" from "bbb": Converium Finance S.A.-- --USD 200 million 8.25% guaranteed subordinated notes, due December 2032 (guaranteed by Converium Holding AG and Converium AG) The following debt rating has been downgraded to "bb-" from "bb+": Converium Holdings (North America) Inc.-- --USD 200 million 7.125% unsubordinated senior notes, due October 2023 (originally issued by Zurich Reinsurance Centre Holdings, Inc and assumed by Converium Holdings (North America) Inc.) For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debtratings/. 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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