A.M. Best Views Final Reliance Unicover Settlement Favorably, But Keeps Rating Under Review.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 24, 2000 A.M. Best Co. announced today that the A- (Excellent) rating of Reliance Insurance Group remains under review with negative implications. A.M. Best is encouraged by Reliance Group Holding's recent announcement that it has effected a final global settlement to resolve outstanding issues relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurance program created and managed by Unicover Managers Inc. This final settlement involves agreements with Reliance's retrocessional reinsurers and more than 20 insurance companies that purchased 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. from Reliance through the Unicover facility. The final settlement terms, amounts and timing were within A.M. Best's expectations. In addition, Reliance was able to manage its after-tax charge for these settlements to roughly $100 million, to be reflected in its fourth quarter 1999 financials. Resolution of Reliance's Unicover liabilities further improves management's capital-raising and debt refinancing Refinancing An extension and/or increase in amount of existing debt. prospects. A.M. Best's review will focus on Reliance's final capital-raising and debt refinancing plans and the group's ability to replenish re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. its diminished capital base and refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. its bank debt which is due March 31, 2000. Integral to A.M. Best's review and maintenance of Reliance's A- rating will be Reliance's ability to execute these financial objectives through definitive agreements with outside parties. A.M. Best expects to conclude its review and take a definitive rating action on Reliance's rating within the next month. 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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