A.M. Best Places Global Indemnity Assurance, Captive Insurer for Browning-Ferris, Under Review.OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 25, 1999-- A.M. Best Co. today placed its A- (Excellent) rating on Global 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. Assurance Co., Burlington, Vt., under review with developing implications. The action followed the completion of the acquisition of the captive's parent company, Browning-Ferris Industries Browning-Ferris Industries, or "BFI", is a licensed trademark of Allied Waste Industries, a North America waste collection company. Many local units of Allied Waste are still known as BFI in the markets they serve. Inc., by Allied Waste Industries Inc., thereby creating the second-largest waste-services company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Global Indemnity's financial strength has been closely tied to the strength of Browning-Ferris Industries since it was established to meet the company's financial assurance obligations. The under review status reflects A.M. Best's concerns with the higher financial leverage of the combined entity resulting from the largely debt-financed nature of the transaction, coupled with the high loss retention of the captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. . Further, there are questions related to the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of Global Indemnity's assets, as well as overall uncertainty with the insurance program for the combined entity. Accordingly, A.M. Best will hold in-depth discussions with Allied's management and update its rating opinion following those discussions. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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