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A.M. Best Removes from Under Review and Affirms Ratings
of AmerInst CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, NEW JERSEY, U.S.A., Dec. 29, 2009—A.M. Best Co. has removed from under review and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of AmerInst Insurance Group, Ltd. (AmerInst) (Hamilton, Bermuda). The outlook assigned to both ratings is stable. The ratings reflect AmerInst’s strong capitalization and experienced management team, as well as its niche expertise as a reinsurer of professional liability policies. Partially offsetting these positive rating factors are the company’s narrow spread of underwriting risk, in addition to the execution risk associated with the implementation of the new business plan. AmerInst intends to continue under its new business plan to employ a conservative reserving methodology under which it had historically booked to a higher loss ratio than that of its primary carrier. AmerInst has met A.M. Best’s higher capitalization requirements, which mandate a more conservative level of risk-based capital for a new business plan. A.M. Best will continue to monitor AmerInst as it implements this business plan. Any material negative deviation from the business plan in terms of management, earnings, capitalization or risk profile could result in negative ratings pressure. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. ### |
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