A.M. Best Upgrades and Assigns Ratings to Evergreen Reinsurance Company, Ltd.; Revises Outlook to Stable.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 assigned an 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. ) of "a" to Evergreen 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, Ltd. (ERCL ERCL East Ridge City Library (East Ridge, TN) ERCL El Reno Carnegie Library (El Reno, OK) ) (Hamilton, Bermuda). The outlook for the FSR has been revised to stable from positive, and the outlook assigned to the ICR is stable. This ratings reflect ERCL's excellent capitalization, consistently strong operating performance and its unique role as the primary insurance carrier for its ultimate parent, Evergreen Group. These positive rating factors are derived from ERCL's conservative 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. standards, low cost operating structure and multiple product line book of business and broad geographic exposure base. Partially offsetting these positive rating factors is ERCL's exposure to earthquakes and typhoons in the Asia/Pacific region, though the risk is mitigated by policy sublimits, prudent reinsurance and the wide geographic dispersion of assets insured. Furthermore, the majority of its book of business is generated from one source: Evergreen Group. Nonetheless, ERCL's business is diverse in scope, complexity and in its risk profile. In addition, management places great emphasis on risk control and carefully monitors ERCL's writings in order to avoid a concentration of risk. The ratings also reflect the strong level of commitment on the part of the Evergreen Group, whose management incorporates ERCL as an integral component in the overall risk management program of Evergreen Group. Moreover, ERCL benefits from its parent's global scope and business relationships. These commitments have been developed over the last several years and encompass risks located in a number of countries in East and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . Overall, ERCL benefits from strong management experience and the market presence of its parent, as well as adherence to a philosophy of providing a stable market for global insurance and reinsurance for the Evergreen Group and its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . For current 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. and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. 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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