A.M. Best Places Underwriters Reinsurance Group Under Review With Developing Implications.OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 13, 1998--A.M. Best Co. has placed the "A+" (Superior) rating of Underwriters 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. Group, Woodland Hills, Calif., under review with developing implications. The rating action follows the group's recent announcement that it intends to acquire Venton Holdings Ltd., a Bermuda-based holding company that conducts global insurance and reinsurance business with operations in London and Bermuda. Venton Holdings owns Venton Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. Ltd., an underwriting corporate member of Lloyd's. The transaction involves $190 million in cash and the assumption of $123 million in contingent letter of credit obligations. Venton also owns Venton Underwriting Agencies Ltd., a Lloyd's managing agency, and Venton Insurance Ltd. Insurance and reinsurance business underwritten by Venton is derived predominantly from three Lloyd's syndicates, in which Venton is a corporate member and managing agent. Venton's book of business represents a broad-based, diversified product mix with risks located throughout the world. Its business is primarily written 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. , United Kingdom, Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , Canada and Australia. On a U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, Venton Holdings Ltd. reported approximately $187 million in gross premiums and shareholders equity of $61 million at year-end 1997. In the long term, A.M. Best believes the proposed acquisition will enhance Underwriters Re's competitive market position by providing access to Lloyd's global market, as well as diversifying the group's growth and earnings prospects outside the United States. The rating will remain under review pending close of the transaction, A.M. Best's review of the proposed financing and a detailed review of Venton's operations. A.M. Best will also have further discussions with Underwriters Re and Venton management regarding integration issues and potential business overlap. The transaction is subject to regulatory approvals in New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , Bermuda and the Council of Lloyd's An Act of Parliament, the Lloyd's Act 1982, defines the management structure and rules under which Lloyd's operates. Under the Act, the Council of Lloyd's is responsible for the management and supervision of the market. and is expected to close in November 1998. 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 http://www.ambest.com.
CONTACT: Jeffrey Dunsavage
(908) 439-2200, ext. 5618
dunsavj@ambest.com
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion