A.M. Best Downgrades and Withdraws Ratings of Inter-Ocean and Its Subsidiaries.OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A- (Excellent) and the issuer credit rating to "bbb" from "a-" for the 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. subsidiaries of Inter-Ocean Holdings Limited (Inter-Ocean) (Bermuda). Additionally, A.M. Best has downgraded the issuer credit rating to "bb" from "bbb-" of Inter-Ocean. Subsequently, Inter-Ocean and its reinsurance subsidiaries ratings will be withdrawn and assigned a rating of NR-4 (Company Request). The latter action is in response to management's request that the operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. be removed from A.M. Best's interactive rating process. The rating 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. follows Inter-Ocean's announcement that it has voluntarily entered into 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. and has ceased writing new business. As a runoff entity, Inter-Ocean's liabilities will continue to be supported by its 11 shareholders who originally sourced all of the company's business and continue to maintain a strong level of expertise in the global insurance and reinsurance market. One of these shareholders ultimately assumes all 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. or timing risk for each transaction undertaken by Inter-Ocean. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 470 reinsurance companies, please visit http://www.ambest.com/reinsurance/. 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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