A.M. Best Upgrades Ratings of Labuan Reinsurance (L) Ltd.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Very Good) and the 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 Labuan 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. (L) Ltd (Labuan Re) (Malaysia). The outlook for both ratings is stable. The ratings reflect Labuan Re's continued improvement in underwriting performance, conservative investment portfolio and solid financial strength. Labuan Re's underwriting performance has shown a significant improvement in recent years. The company turned its underwriting result to positive in fiscal year 2003. Since then the company recorded underwriting profits for three consecutive years, even though the company experienced catastrophe losses in both fiscal year 2005 and 2004. A.M. Best is of the opinion that the favorable underwriting result is sustainable in years with normal loss activity. Labuan Re has maintained a conservative investment portfolio. The company invests over 60% of its total assets in bonds and cash. In addition, Labuan Re limits its investments in equities to 10% of the total investment portfolio. The Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ), which measures capitalization on a risk-adjusted basis, indicates that the capitalization of Labuan Re is adequate. The capital commitment from its shareholders is evidenced in the consistent capital injections since the company's inception. The company had initial paid-up capital Paid-Up Capital The total amount of shareholder capital that has been paid in full by shareholders. Notes: Paid-up capital is essentially the portion of authorized stock that the company has issued and received payment for. of 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. 10 million, which was substantially increased to USD 150 million in more recent years. The shareholders have also committed an additional USD 50 million in capital should the company need to increase its capitalization. Offsetting factors include weak underwriting performance of the company's overseas business from its office in Bahrain and increasing competition in Asian and Middle East markets. The loss ratio of the overseas business from the Bahrain office still stood at a high level of over 80% in fiscal year 2005. Although the loss ratio has shown an improvement trend in recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Bahrain office still recorded a combined ratio of over 100% in fiscal year 2005. 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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