|
|
|
A.M. Best Assigns Rating to Risk Reinsurance Limited CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., Mar. 21, 2008—A.M. Best Co. has assigned an issuer credit rating (ICR) of “a+” and affirmed the financial strength rating (FSR) of A (Excellent) of Risk Reinsurance Limited (RRL) (George Town, Cayman Islands). The outlook assigned to the ICR is stable, and the outlook for the FSR is stable. These ratings reflect RRL’s excellent capitalization and balance sheet strength, profitable results, as well as the strategic role it performs as a captive insurance company for Transpower New Zealand Limited (Transpower), a state-owned enterprise (SOE) of the government of New Zealand. Partially offsetting these positive rating factors is that the source of RRL’s business is limited to hazards with the potential for a substantial loss for the company. A.M. Best’s capital adequacy model indicates that RRL carries sufficient capital to support its business writings and the retention levels assumed on the risks it insures. Furthermore, RRL cedes excess exposure layers to reinsurers with strong financial strength ratings. It does not insure any third party risks and has no current intention to do so. All investment assets are placed in a conservative and highly liquid portfolio consisting of cash equivalents, bonds and a small amount of equities. Investments are restricted to NZD, AUD and USD denominated instruments. RRL benefits from the strong implied support of Transpower, which provides the company with additional levels of financial flexibility. RRL has the advantage of the dedicated attention of its management team to ensure its sound operation and financial security. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. ### |
|