BestWeek: Surety Insurers Recapture Profitability.OLDWICK, N.J. -- The surety industry has seen a drastic reduction in loss ratio in recent years due mainly to disciplined credit pricing and 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. effort that began in late 2001 with the commercial surety segment and the contractor segment in 2004 and 2005. Last year, the aggregate loss ratio fell to 41%, from a high of 83% in 2001, marking the industry's return to a profitable position after five years in the red, experts say in an exclusive interview in the April 17 BestWeek. John Welch John Welch (October 28, 1805 - August 5, 1891) was a U.S. Representative from Ohio. Born near New Athens, Ohio, Welch received a liberal schooling and was graduated from Franklin College. He moved to Athens County in 1828 and settled in Rome Township. , president and chief executive officer of CNA (Certified NetWare Administrator) See Novell certification. Surety, the second largest surety writer, and the top performer for the week of April 13 in the Best's Insurance stock Composite, said before conditions worsened, the surety line had been profitable for almost a decade. Also in the April 17 BestWeek: --How landmark Massachusetts health-care legislation might make health insurers more eager to expand membership in the individual health insurance market; --A.M. Best Co.'s special reports on the financial impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. rate of the property/casualty and life/health segments of the insurance industry; and --Best's Insurance Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". finished the week of April 13, 2006, at 1,115.31, up 16.76% compared with a year ago. The composite index reflects the performance of 134 insurance stocks. In addition to CNA Surety, the week's top performers were Meadowbrook Insurance Group; James River James River or Dakota River River in the U.S. rising in central North Dakota and flowing southeast across South Dakota. It joins the Missouri River about 5 mi (8 km) below Yankton after a course of 710 mi (1,140 km). Group; Financial Industries Corp.; and American National Insurance Co. The week's bottom performers were Vesta Insurance Group; American Equity Investment Life Holding Co.; Presidential Life Corp.; and Safety Insurance Group Inc. BestWeek is published by A.M. Best for insurance professionals, including home office executives, agents and brokers. To subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; BestWeek, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com. 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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