A.M. Best Places Rating of Gerling Konzern Globale Ruckversicherung AG Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 3, 2002 A.M. Best Co. has placed the financial strength rating of A- (Excellent) of Gerling Konzern Globale Ruckversicherung AG (GKG GKG Gabah Kering Giling ) and its core subsidiaries (see list below) under review with negative implications. The "bbb" rating for the EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 220 million subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". issued by Gerling Global Finance Alpha B.V. has also been placed under review with negative implications. These rating actions reflect the ongoing uncertainties regarding the future ownership of GKG, which could potentially damage the company's current strong business position at the next renewal season. GKG remains amongst the 10 largest 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. groups worldwide. Since the termination of the negotiations with SCOR SCOR Scientific Committee on Oceanic Research SCOR Supply Chain Operations Reference model SCOR Small Corporate Offering Registration SCOR Specialized Center of Research (White Plains, NY) SCOR Second Cousin Once Removed (rated A with a stable outlook), GKG has been working on a contingency plan A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. but has not discarded dis·card v. dis·card·ed, dis·card·ing, dis·cards v.tr. 1. To throw away; reject. 2. a. To throw out (a playing card) from one's hand. b. the possibility of finding another buyer. A.M. Best continues to recognise GKG's restored strong consolidated risk-based 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 after several capital injections in 2002 and the placing of Gerling Global Reinsurance Corporation of America (GGRCA) into run-off. However, A.M. Best remains concerned about GKG's limited financial flexibility and the parent company's unwillingness to provide financial support to GKG. The ratings will remain under review with negative implications until A.M. Best re-assesses the company's business profile, strategy and capitalisation after the renewal season. The following A- (Excellent) financial strength ratings have been placed under review with negative implications: - Gerling-Konzern Globale Ruckversicherung - Gerling Global Life Reinsurance of Australia - Gerling Global Reinsurance Co. of Australia Pty - Gerling Global International Reinsurance Co. - Gerling Global Life Reassurance Co. (UK) - Gerling Global General & Reinsurance Co. Ltd - Gerling Global Reinsurance Co. of South Africa - Gerling Global Reinsurance Company - Gerling Global Sweden Reinsurance Co. Ltd - Gerling Globale Ruckversicherung AG - Gerling Global Life Insurance Company - Gerling Global Life Reinsurance Company The following "bbb" debt rating has been placed under review with negative implications: - EUR 220 million subordinated debt issued by Gerling Global Finance Alpha B.V. and sub-guaranteed by Gerling-Konzern Global Ruckversicherung 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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