Fitch Affirms Max Re, Removes Watch Negative; Outlook Stable.CHICAGO -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed the insurer financial strength ratings of Max Re Ltd. and its Dublin-based subsidiaries, Max Re Europe Limited and Max Insurance Europe Limited at 'A'. In addition, Fitch has affirmed the issuer default rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. 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. )of Max Re Capital Ltd., the Bermuda-based holding company of Max Re Ltd at 'A-'. All ratings are removed from Rating Watch Negative. The Rating Outlook is Stable. The rating action reflects a reduced level of uncertainty following Fitch's assessment that Max Re's franchise, reputation, competitive and financial position was not adversely impacted as a result of the company's reopened internal finite risk investigation and further restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. in November 2006. Fitch also feels confident that W. Marston 'Marty' Becker, Max Re's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , and the management team will continue to successfully execute the company's business strategy going forward. Mr. Becker was appointed Chairman and CEO following the resignation of Robert J. Cooney, one of the company's founders, in October 2006. Fitch's ratings on Max Re reflect the company's disciplined and flexible approach to 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. risks, through the continued use of its sophisticated models and structuring of every contract with loss caps and aggregate limits, improved operating results posted in 2006 and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. parent company financial flexibility. Partially offsetting these positives is the execution risk derived from Max Re's shifting product strategy, most recently announcing plans to enter the U.S. excess and surplus lines market, and uncertainty related to how the Securities and Exchange Commission (SEC) could potentially respond to the information provided by the company in relation to its restatements. Max Re reported record net income in 2006 driven by solid underwriting and investment results. The company posted an 86.4% combined ratio in its property/casualty segment, improved from 106% in 2005, which included sizable, but manageable hurricane losses. The following ratings have been affirmed with a Stable Rating Outlook and removed from Rating Watch Negative by Fitch: Max Re Capital Ltd. --Issuer Default Rating (IDR) 'A-'. Max Re Ltd. Max Re Europe Limited Max Insurance Europe Limited --Insurer financial strength 'A'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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