Fitch Downgrades ACE Capital Title Re's IFS Rating to 'A-'.Business Editors CHICAGO--(BUSINESS WIRE)--April 12, 2004 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 downgraded the insurer financial strength (IFS) rating of ACE Capital Title 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 (ACTR ACTR American Council of Teachers of Russian ACTR Actuator ACTR Association for Canadian Theatre Research ACTR A Christmas To Remember ACTR Assistant Contract Technical Representative (NMCI liaison) ) to 'A-' from 'AA'. This action reflects today's announcement that ACTR's parent, ACE Capital Re Overseas Ltd. (ACRO acro Acronym ACRO Australian Creative Resources Online ACRO Association of Clinical Research Organizations ACRO American College of Radiation Oncology ACRO Aircraft Crashes Record Office (Geneva, Switzerland) acro acrolein ), has entered into a definitive agreement to sell ACTR and assign its guarantee of ACTR's liabilities to ACE Limited or one of its subsidiaries (ACE). ACRO's IFS rating is 'AA' and ACE's long-term issuer and senior debt ratings are 'A-'. The ACRO and ACE ratings are unaffected by these actions. The Rating Outlook for ACTR is Stable. ACTR's previous rating was driven primarily by the support of its immediate parent (ACRO) and that the title reinsurance business fit into ACE's overall strategy. However, in December 2003, ACE announced its intention to pursue an initial public offering of its financial guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. business, which includes ACRO but excludes ACTR. The downgrade reflects that the title reinsurance business is no longer a part of ACE's overall strategy and will be placed in run-off, and that ACRO believes it is not bound by the guaranty after it has been assigned to ACE. ACTR reported $25.8 million policyholder surplus at December 31, 2003. ACE reported consolidated GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). assets and shareholders equity of $49.6 billion and $8.8 billion, respectively at December 31, 2003. Entity/Issue/Type Action Rating/Outlook ACE Capital Title Re --Insurer financial strength Downgrade 'A-'/Stable. |
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