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A.M. Best Withdraws Ratings of Connaught Insurance Company Limited CONTACTS:
FOR IMMEDIATE RELEASE LONDON, 28 September 2011—A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of Connaught Insurance Company Limited (Connaught) (Guernsey), the captive insurance company of Thomas Greg & Sons Limited, a security printing specialist based in Colombia. The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings due to the company’s request to no longer participate in A.M. Best’s interactive rating process. The rating affirmations reflect Connaught’s large reduction in capital base in 2011 due to a substantial dividend payment; although, maintaining a level of risk-adjusted capitalisation supportive of the current ratings. Despite its restricted business profile and potential volatility of underwriting results, the company has historically maintained an excellent underwriting performance. In 2010, Connaught had a low level of claims; which was a typical feature for the company in the past few years. Return on equity improved to 12.7% from 9.5% in 2010, and liquidity remained excellent with the majority of investments held in cash and deposits. The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; and “A.M. Best’s Rating Methodology for Captive Insurance Companies”. Methodologies can be found at www.ambest.com/ratings/methodology. In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure. A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. ### |
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