A.M. Best Takes Various Rating Actions on Converium.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 8, 2004 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A (Excellent) of Converium AG (Switzerland) and its core subsidiaries, collectively referred to as Converium. (See below for a full list of ratings.) The outlook for all ratings is stable. The ratings reflect expected improvement in Converium's consolidated earnings in 2004. This is expected to result from growth in net earned premiums Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. of approximately 8% (driven by continuing rate increases for Converium's casualty 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. business), a modest improvement in the company's investment return and a higher level of funds available for investment derived from Converium's growing portfolio of long-tail specialty business (total investments including cash are expected to increase approximately 15% in 2004). The company's non-life combined ratio is expected to be broadly similar to the 2003 level of 96.8%, and the company's life and health segment is expected to be profitable after taking into account additional reinsurance protection for the company's volatile book of Guaranteed Minimum Death Benefit (GMDB GMDB Guaranteed Minimum Death Benefit (insurance) ) business. A.M. Best expects Converium to maintain its risk-adjusted capital at the current level. An offsetting factor is uncertainty relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc reserving levels for U.S. casualty business written between 1997 and 2001. However, A.M. Best continues to believe that in 2004, any deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. is likely to be outweighed by favourable performance from business written during the calendar year. The financial strength rating of A (Excellent) has been affirmed and an issuer credit rating of "a" has been affirmed for the following company: -- Converium AG. An issuer credit rating of "a" has been assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. for the following companies: -- Converium Rueckversicherung (Deutschland) AG -- Converium Reinsurance (North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ) Inc. -- Converium Insurance (North America) Inc. -- Converium Insurance (UK) Ltd An issuer credit rating of "bbb" has been assigned to the following company: -- Converium Finance S.A. The issuer credit rating has been downgraded to "bbb-"from "bbb" for the following company: -- Converium Holdings (North America) Inc. The following debt rating has been assigned: Converium Finance S.A.-- -- "bbb+" to USD USD In currencies, this is the abbreviation for the U.S. Dollar. 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. 200 million 8.25% guaranteed subordinated notes, due December 2032 (guaranteed by Converium Holding AG and Converium AG) The following debt rating has been downgraded to "bbb-"from "bbb": Converium Holdings (North America) Inc.-- -- USD 200 million 7.125% unsubordinated senior notes, due October 2023 (originally issued by Zurich Reinsurance Centre Holdings, Inc and assumed by Converium Holdings (North America) Inc) For a list of A.M. Best's debt ratings, please visit http://www3.ambest.com/debtratings/. 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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