S&P Affms Reinsurer Secura N.V. 'A-' Rtgs; Otlk Stbl.Business Editors LONDON--(BUSINESS WIRE)--July 17, 2003 Standard & Poor's--Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. said today it affirmed its 'A-' long-term counterparty credit and insurer financial strength ratings on Belgium-based reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. Secura N.V., following a review. The outlook is stable. "The ratings on Secura are enhanced by the provision of a suitably worded guarantee from parent company KBC KBC Kenya Broadcasting Corporation KBC Kaun Banega Crorepati (Indian TV show) KBC Koahnic Broadcast Corporation (Anchorage, Alaska) KBC Keyboard Connector KBC Kill Before Capture Insurance N.V. (A+/Negative/--), which has recently reiterated its support for Secura," said Standard & Poor's credit analyst Marcus Rivaldi. Standard & Poor's stand-alone view reflects Secura's strong franchise within the Benelux market, refocused strategy, and the generally buoyant 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. market conditions. These factors are offset by concerns about the company's continuing marginal earnings performance, significantly reduced capital adequacy, and the strength of Secura's business position outside of Benelux. Secura is a 95%-owned subsidiary of the KBC financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. group (KBC), Belgium's third-largest banking and insurance group, whose main insurance operating company operating company A business that engages in transactions with outsiders. is KBC Insurance. "Standard & Poor's expects that KBC will retain its shareholding in Secura for the medium term," said Mr. Rivaldi. "Although efforts to identify a long-term partner for Secura have ceased, they may resurface re·sur·face v. re·sur·faced, re·sur·fac·ing, re·sur·fac·es v.tr. To cover with a new surface: resurfacing a road; resurfaced the floor. v.intr. in the medium term. In the mean time, the guarantee provided by KBC Insurance will remain in place," added Mr. Rivaldi. In the absence of abnormal market losses, generally buoyant market conditions will help to improve underwriting performance over the next couple of years to the extent that Standard & Poor's expectations of a combined ratio of less than 110.0% will be met in 2003. Capital adequacy is not expected to recover significantly in the medium term due to the potential for further reserve strengthening, plus the impact of forecast significant premium and more modest reserve growth over the rating horizon. The competitive activity of larger reinsurance groups will continue to affect Secura's business position, most noticeably outside of its traditional Benelux area of strength. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. Alternatively, call one of Standard & Poor's Ratings Desks: London (44) 20-7847-7400; Paris (33) 1-4420-6705; Frankfurt (49) 69-33-999-223; or Stockholm (46) 8-440-5916. Members of the media may contact the Press Office Hotline on (44) 20-7826-3605 or via media_europe@standardandpoors.com. ANALYST E-MAIL ADDRESSES See Internet address. e-mail address - electronic mail address marcus_rivaldi@standardandpoors.com stephen_searby@standardandpoors.com InsuranceInteractive_Europe@standardandpoors.com Copyright 2003, Standard & Poor's Ratings Services |
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