A.M. Best Places Munich Re's Ratings Under Review With Negative Implications.OLDWICK, N.J. -- A.M. Best Co. has placed the ratings of Muenchener Rueckversicherungs-Gesellschaft (Munich Re Munich Re AG, in German Münchener Rück AG (ISIN: DE0008430026), is the world's second largest reinsurance company with over 5,000 customers in 160 countries and has its headquarters in Munich, Germany. ) (Germany) and its rated subsidiaries under review with negative implications. These rating actions follow Munich Re's recent announcement that it is reviewing American Re's reserve position (see related A.M. Best press release on American Re) and A.M. Best's concerns about the potential negative impact on Munich Re's consolidated risk-adjusted capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper as well as consolidated earnings in 2005. The financial strength rating of A+ (Superior) and the issuer credit rating of "aa" have been placed under review with negative implications for Munich Re and its following subsidiaries: --Munich 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. Company of Australasia Ltd. --New Reinsurance Company --Munich Reinsurance Italy S.p.A. --Munich Reinsurance Company Canada --Munich American Reassurance REASSURANCE. When an insurer is desirous of lessening his liability, he may procure some other insurer to insure him from loss, for the insurance he has made this is called reassurance. Company --Great Lakes Reinsurance (UK) PLC The following debt ratings of "aa" have been placed under review with negative implications: Munich Re Finance B.V.-- --EUR 3 billion 6.75% subordinated bond A Subordinated bond is a bond that has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy. In case of liquidation, there is a hierarchy of creditors. First the liquidator is paid, then government taxes, and so on. , due 2023 --GBP 300 million 7.625% subordinated bond, due 2028 For Best's Debt Ratings, all other 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. 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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