“A.M. Best Affirms Ratings of White Mountains Insurance Group, Ltd. and Its Subsidiaries” |
| A.M. Best Affirms Ratings of White Mountains Insurance Group, Ltd. and Its Subsidiaries Posted: 13 Sep 2010 07:21 AM PDT Press Release Source: A.M. Best Co. On Monday September 13, 2010, 10:21 am EDT OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of the U.S. operating companies comprising OneBeacon Insurance Group (OneBeacon) (Canton, MA) and the FSR of A- (Excellent) and ICRs of "a-" of the U.S. operating companies comprising Esurance Insurance Group (Esurance) (headquartered in San Francisco, CA). Concurrently, A.M. Best has affirmed the ICR of "bbb" of OneBeacon's publicly traded parent, OneBeacon Insurance Group, Ltd. (OneBeacon Ltd.) (Hamilton, Bermuda) [NYSE: OB] and its intermediated holding company, OneBeacon U.S. Holdings, Inc. (OneBeacon U.S.) (Minnetonka, MN). Additionally, A.M. Best has affirmed the FSR of A- (Excellent) and ICR of "a-" of White Mountains Reinsurance Company of America (WMRe America) (New York, NY) and the ICR of "bbb-" as well as the debt ratings of its intermediate parent holding company, White Mountains Re Group Ltd. (White Mountains Re Group) (Hamilton, Bermuda). A.M. Best also has affirmed the ICR of "bbb" and debt ratings of the group's ultimate parent, White Mountains Insurance Group, Ltd. (White Mountains) (Hamilton, Bermuda) [NYSE: WTM]. The outlook for all ratings is stable. (Please see link below for a detailed listing of companies and ratings.) White Mountains' ratings reflect its strong financial flexibility and the solid operating results generated through its operating subsidiaries. OneBeacon's ratings reflect its sound risk-adjusted capitalization and strong earnings through its favorable underwriting and operating performance. The ratings also consider the financial flexibility of OneBeacon U.S. and OneBeacon Ltd. These positive rating factors are partially offset by OneBeacon's weak underwriting and operating performance prior to 2003, largely related to adverse development on its run-off operations. Esurance's ratings recognize its solid risk-adjusted capitalization and the ongoing support of White Mountains. Offsetting these positive rating factors is the group's high rate of premium growth, significant reinsurance dependence and continued underwriting losses (as it continues to invest in marketing to grow its policyholder base), which generate weak operating results relative to its personal auto peers. WMRe America's ratings acknowledge its enhanced risk management and strategic importance to White Mountains, as well as its long-term market presence and excellent level of risk-adjusted capitalization. As a result of these strategies, WMRe America achieved positive underwriting results in 2009 and combined with net realized capital gains, increased the overall capital base of the company. Offsetting these factors is the volatility in WMRe America's overall operating performance. In 2010, WMRe America incurred significant losses from the Chilean earthquake, and in 2008, the company incurred significant net realized capital losses and charges resulting from the strengthening of prior accident years' loss reserves. For a complete list of White Mountains Insurance Group, Ltd. and its subsidiaries' FSRs, ICRs and debt ratings, please see www.ambest.com/press/091301whitemountain.pdf. 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 utilized 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 Ratings & the Treatment of Debt." Methodologies 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. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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