A.M. Best Upgrades Ratings of Finial Reinsurance Company.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 B+ (Good) 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 "bbb-" for Finial fin·i·al n. 1. Architecture A sculptured ornament, often in the shape of a leaf or flower, at the top of a gable, pinnacle, or similar structure. 2. An ornamental terminating part, as on a post or piece of furniture. 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. Company (Finial) (Stamford, CT). The outlook for both ratings is stable. The ratings reflect Finial's strong capitalization, currently solid liquidity measures and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 2007 earnings. Additionally, the ratings take into consideration Finial's ownership by National Indemnity Company (Omaha, NE), which maintains superior financial strength. Finial has demonstrated orderly run off of its prior year liabilities while maintaining significant cash holdings and fixed income investments of excellent credit quality. The company has generated investment income on its asset base to offset the payout of prior year liabilities. Somewhat offsetting these strengths are the company's modest business profile and the potential exposure to adverse loss reserve development from prior accident years. A.M. Best will monitor Finial's prospective cash flow generation and asset and liability matching while the company continues its run off strategy. Concurrently, A.M. Best has affirmed the ICR of "bbb-" and debt ratings of "bbb-" on the $200 million 7.125% senior unsecured notes due 2023 of Finial Holdings, Inc. (Delaware). The outlook for both ratings is stable. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , 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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