A.M. Best Upgrades EXEL Ltd. and Group Members To "A+" From "A".OLDWICK, N.J.--(BUSINESS WIRE)--April 15, 1997--Effective immediately, A.M. Best Co. has raised the rating on EXEL Ltd. and its group members to "A+" (Superior) from "A" (Excellent). The "A+" rating reflects the group's strong market position as one of the top providers of excess liability insurance coverage to Fortune 1000 companies around the world. The group specializes in providing large policy limits on general liability, directors and officers, and professional liability insurance, along with specialty 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. products to large and complex business risks. The group markets its products through all of the major insurance brokers and is based out of the tax-efficient market of Bermuda, with another office in the important international insurance center of London. The rating also reflects the company's strong management team, successful business diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. strategies and strong balance sheet, with over $2 billion in stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. supporting $600 million in writings, along with over $2 billion in loss reserves at Nov. 30, 1996. Since its creation more than 10 years ago during the liability crisis of the mid- mid- pref. Middle: midbrain. 1980s, the group has developed a large business franchise for large, sophisticated buyers of insurance requiring large limits of liability insurance over significant self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance layers. Over the past five years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time group has averaged an annual premium growth rate of 12%, retained approximately 90% of its insureds and generated outstanding 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. results, with an average combined ratio of 93%, due to a focused and disciplined underwriting approach. The group maintains strong financial flexibility, with no outstanding debt, significant cash liquidity--including a large line of credit--and is publicly traded with good valuation levels on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . The rating action applies to the three insurance companies that make up the EXEL Ltd. Group: X.L. Insurance Co. Ltd., Europe Insurance, and X.L. Reinsurance Ltd. Management's initiatives have further positioned the group to take advantage of acquisitions and other market opportunities that will lead to stronger long-term relationships with clients and make the company less vulnerable to competition. Based on the group's management and its history of meeting strategic benchmarks and maintaining consistent growth, A.M. Best views the rating outlook as stable. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: JEFFREY DUNSAVAGE (908) 439-2200, ext. 5618 http:\\www.ambest.com |
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