-AM Best confirms ratings of Risk Reinsurance.
BANKING AND CREDIT NEWS-March 3, 2011--AM Best confirms ratings of Risk Reinsurance(C)2011 M2 COMMUNICATIONS http://www.m2.com
3 March 2011 - AM Best reiterated on Wednesday the financial strength rating (FSR) of A- (superior) and the "aa-" issuer credit rating (ICR) of Cayman Islands-based Risk Reinsurance Ltd (RRL).
The ratings carry a "stable" outlook.
The ratings reflect RRL's superior capitalisation and balance sheet strength, profitable results and the strategic role it performs as a captive insurance company of Transpower New Zealand Ltd, a state-owned enterprise of the government of New Zealand, the service specified.
Partially offsetting these positive rating factors is the source of RRL's business is limited to hazards with the potential for a substantial loss, AM Best noted. The company cedes excess exposure layers to reinsurers with strong financial strength ratings. It does not insure any third party risks.
RRL benefits from Transpower's strict adherence to the New Zealand Regulatory Risk Management framework, enhanced by its own integration within Transpower's risk structure, the rater added.
((Comments on this story may be sent to firstname.lastname@example.org))