A.M. Best Downgrades Ratings of Gerling Global Reinsurance Corporation of America and Its Subsidiary.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 2, 2002 A.M. Best Co. has downgraded the financial strength ratings to B+ (Very Good) from A- (Excellent) of Gerling Global 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. Corporation of America (GGRCA) and its subsidiary, Constitution Insurance Company (CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. ). The ratings remain under review with negative implications. These rating actions follow today's announcement by GGRCA's parent, Gerling Konzern Globale Rueckversicherungs (GKG GKG Gabah Kering Giling )--which is rated A- (Excellent) and is under review with negative implications--that it is to withdraw from the U.S. non-life reinsurance market as a result of a strategic review of its U.S. operations. Consequently, GGRCA will stop writing new business with immediate effect. CIC has already ceased writing new business. GGRCA is no longer considered core to the parent and therefore is now rated on a stand-alone basis. A.M. Best remains concerned that further adverse claims development from GGRCA's portfolio could place additional strain on its weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. 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. . 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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