Debeka Leben Rating Raised to BBBpi.Business Editors LONDON--(BUSINESS WIRE)--Standard & Poor's June June: see month. 19, 2000-- Standard & Poor's today raised the insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. financial strength rating of Debeka Lebensversicherungsverein aG (Debeka Leben) to triple-'Bpi' (good) from double-'Bpi'(marginal). The upgrade reflects the company's improved risk-adjusted capital position. Additional rating factors are the company's good risk-adjusted earnings and strong business position within the German life insurance market. Debeka Leben is a leading mutual life insurer operating in the German life market. The company is ranked eighth overall in the market on the basis of 1998 premium volumes. Debeka Leben's risk-adjusted capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. (reflecting due allowance for hidden asset values and redundancies in technical reserves) has gradually improved over recent years and is now regarded as good by Standard & Poor's. The improvement in capitalization--during a period of rapid expansion--is chiefly attributable to two factors. Firstly, the company has been increasing the proportion of emerging surplus allocated to future bonus reserves as opposed to bonus distributable in the following year. The proportion of total bonus reserves allocated to future bonus increased to 34% in 1998 from 26% in 1994. Secondly, Debeka Leben's increased investments in shares at a time of rapid stock market growth has also benefited capital. The proportion of total invested assets held in shares, while still small (at 3%), has doubled over the past four years. Public information ratings, denoted with a "pi" subscript (1) In word processing and scientific notation, a digit or symbol that appears below the line; for example, H2O, the symbol for water. Contrast with superscript. (2) In programming, a method for referencing data in a table. , are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis meetings with an insurer's management and are therefore based on less-comprehensive information than ratings without a "pi" subscript. "Pi" ratings are reviewed annually, based on a new year's financial statements, but may be reviewed on an interim basis if a major event occurs that may affect the insurer's financial security. Ratings with a "pi" subscript generally are not subject to potential CreditWatch listings. Ratings with a "pi" subscript generally are not modified with "plus" or "minus" designations. However, such designations may be assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. when the insurer's financial strength rating is constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by sovereign risk Sovereign Risk The risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts. or the credit quality of a parent company or affiliated group, Standard & Poor's said.---CreditWire |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion