A.M. Best Upgrades Rating of Gerling Canada Insurance Company.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 11, 2003 A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) of Gerling Canada Insurance Company (Ontario), which will be known as GCAN Insurance Company in the near future. The rating outlook is stable. The rating action follows the sale of Gerling Canada last month to a group of Canadian financial and other private equity investors. The sale removed the uncertainty surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the company while its former parent company reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. its operations. The upgrade reflects Gerling Canada's superior operating performance, excellent 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 its well defined business position within the industrial insurance sector. The company's 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 have consistently outperformed the industry. Gerling Canada further benefits from its conservative operating philosophy and experienced management team. Partially offsetting these positive rating factors is the competitive market conditions in the Canadian property/casualty market. In addition, given the company's 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. dependence, it will be challenged by raising reinsurance costs attributed to a hardening hardening, in metallurgy, treatment of metals to increase their resistance to penetration. A metal is harder when it has small grains, which result when the metal is cooled rapidly. reinsurance market. Going forward, the company will also be servicing new debt through planned dividend payments. 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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