A.M. Best Places Ratings of Royal & SunAlliance USA Under Review with Negative Implications.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 4, 2003 A.M. Best Co. has placed the financial strength ratings of A- (Excellent) of the Royal & SunAlliance USA Insurance Pool (RS&A USA) (Charlotte, NC) and the Royal Surplus Lines Insurance Company (Connecticut), under review with negative implications. These actions follow the announcement by RS&A USA's UK parent, Royal & SunAlliance Insurance Group plc (RS&A), of its restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the U.S. business, which will likely include a substantial charge for loss reserves as well as disposition of a sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. portion of RS&A USA's commercial business and personal lines
business. While the proposed restructuring in the U.S. will reduce
RS&A's global consolidated risk capital requirements Capital requirementsFinancing required for the operation of a business, composed of long-term and working capital plus fixed assets. , A.M. Best remains concerned that the restructuring will negatively impact the business profile of RS&A USA operations and may significantly erode Erode (ĕrōd`), city (1991 urban agglomeration pop. 361,755), Tamil Nadu state, S India, on the Kaveri River. The city is located in a cotton-growing region, and its industries include cotton ginning and the manufacture of transport equipment. the capital position of the U.S. insurance entities. A.M. Best is currently assessing the impact of this restructuring on the U.S. companies' pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating performance, capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and reserve adequacy and expects to conclude on the U.S. ratings by the time RS&A announces its third quarter results in November. For a comprehensive list of Royal & SunAlliance USA Insurance Pool's financial strength ratings please visit www.ambest.com/press/090405royalsunallianceusa.pdf. 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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