A.M. Best Equalizes Ratings of Winterthur International America Insurance Company and Winterthur International America Underwriters Insurance Company.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 25, 2001 A.M. Best Co. has removed Winterthur International America Insurance Company (WIA WIA abbr. wounded in action ), Sun Prairie, Wisconsin Sun Prairie is a city in Dane County, Wisconsin and is a suburb of Madison, Wisconsin. As of the 2000 census, the city population was 20,369 and is expected to double in size by 2020 to around 40,000. and its 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. affiliate, Winterthur International America Underwriters Insurance Company (WIAU) Tulsa, Oklahoma Tulsa is the second-largest city in the state of Oklahoma and 45th-largest in the United States. With an estimated population of 382,872 in 2006,[1] it is the principal municipality of the Tulsa Metropolitan Statistical Area, a region of 897,752 residents projected to , from under review and assigned a financial strength rating of A+ (Superior), the group rating of XL Capital Ltd., to both following their recently completed acquisition by XL America, Inc. The acquisition of WIA and WIAU are part of XL Capital Ltd.'s larger acquisition of Winterthur International, an all cash transaction valued at approximately $600 million. A.M. Best believes the acquisition significantly elevates XL Capital's market stature within the Fortune 2000 customer group, increases geographical diversity and expands long-term business prospects through cross-selling opportunities. The rating reflects WIA and WIAU's membership in the XL America Group and XL America management's recently established quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). treaty that cedes 100% of all future WIAU business to WIA. A second quota share treaty also has been established and cedes a significant amount of all future WIA business, including WIAU business, to XL Insurance Ltd., Bermuda, an affiliate of XL Capital Ltd. XL America plans to maintain current business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and management for both newly acquired companies. WIA and WIAU are charged with the responsibility for large national and multinational business and deliver a uniquely individual, solution-oriented customer relationship management, a globally integrated network, innovative underwriting and top administrative quality, as well as first rate global risk capacity. Both companies' disciplined underwriting approaches and strong agency relationships have resulted in historically superior operating performances. WIA and WIAU operate on a nationwide basis through four branch offices: Chicago, Dallas, Los Angeles and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Partially offsetting these strengths are the competitive market conditions faced by both companies in core territories and business segments. However, this is mitigated by XL Capital's strong market presence, established distribution system in the U.S. and access to financial markets. XL Capital Ltd., headquartered in Bermuda, provides insurance, reinsurance and financial products on a worldwide basis. At March 31, 2001, XL Capital Ltd. had consolidated assets of approximately $17.6 billion and consolidated shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of approximately $5.7 billion. 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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