A.M. Best Upgrades Ratings of CRC (Bermuda) Reinsurance Limited.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) to A (Excellent) from A- (Excellent) and issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) to "a" from "a-" of CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. (Bermuda) 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. Limited (CRC) (Bermuda). CRC is a direct wholly-owned subsidiary of Fairfax Financial Holdings Fairfax Financial Holdings Limited TSX: FFH.SV NYSE: FFH is a Toronto, Ontario based financial services holding company which, through its subsidiaries, is engaged in property, casualty and life insurance and reinsurance, investment management and insurance claims Limited (Fairfax) (Toronto, Canada) [NYSE NYSE See: New York Stock Exchange : FFH FFH Far From Home (band) FFH Fast Frequency Hopping FFH Frigate Helicopter FFH Final Fantasy High (gaming) FFH Fauji Foundation Hospital (Pakistan) FFH Falling for Her , TSX: FFH]. The outlook for both ratings is stable. The ratings and outlook reflect CRC's adequate capitalization, favorable operating and underwriting performance and relatively modest risk profile. The majority of premiums written by CRC are ceded from the subsidiaries of Northbridge Financial Corporation (Northbridge) (Canada) [TSX: NB], a majority owned subsidiary of Fairfax. In 2003, CRC commenced writing third party business, which remains modest in size and has proved profitable. Exposures to U.S. property/casualty risks written by the Northbridge subsidiaries are excluded, leaving only Canadian-based risks. CRC's premium base generally reflects that of the Northbridge subsidiaries, each of which maintain a well respected niche franchise providing business and Canadian geographical diversification. Although somewhat variable, CRC has produced an underwriting profit since at least 2001. In addition, earnings are supported by above average investment results. CRC's moderate risk profile currently reflects not only a positive underwriting track record but a lack of U.S. property exposure, no reinsurance recoverables, no legacy concerns (including asbestos), no exposure to the vagaries of workers' compensation and a conservative investment portfolio. A.M. Best expects that the capital level of CRC will remain supportive of its current ratings. While CRC is rated on its own financial merits, consideration is made for its position within the Fairfax organization and the implicit and explicit support of Fairfax. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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