Allied World Assurance Company, Ltd. (AWAC) issued a comment on the “A+” (Superior) Rating, recently affirmed by A.M. Best Co. The rating agency had originally accorded the newly formed Bermuda-based insurer the coveted designation last November.
The bulletin noted that the same rating has been affirmed for its wholly owned subsidiary companies – Allied World Assurance (US) Inc., Newmarket Underwriters Insurance Company and Allied World Assurance Company (Europe) Ltd. Best has also assigned an initial financial strength rating of “A+” (Superior) to Allied World Assurance Company (Re) Ltd. in Ireland.
Best commented: “The outlook for the rating is stable. The rating reflects the company’s superior risk-based capitalization, solid operating performance, experienced management team and the strategic benefits received through association with sponsoring organizations such as the American International Group (AIG) and The Chubb Corporation.”
AWAC expects to keep the rating, even in the face of downgrades in the industry. President and CEO Michael I.D. Morrison noted: “We have solid investor backing, more than $1.8 billion in capital, a strong underwriting discipline and a diversified book of profitable business. We write commercial property and casualty lines, including coverage on energy, transportation and commercial real estate property risks and excess general, professional, and healthcare liability. We have expanded to provide specialty and reinsurance lines of business. We are also diversified geographically in Bermuda, in the United States and in Europe.”
That “solid investor backing” alluded to above, also includes investment bank Goldman Sachs as well as AIG and Chubb.
Commenting on the company’s outlook for 2004, Morrison indicated: “We project that the hard market will continue in 2004. There are still significant capacity shortages in some areas and we will be able to participate at advantageous terms because of this. Our business plan remains unchanged and our team of experienced underwriters will continue to provide clients and brokers with realistic pricing discipline and quick response times.”
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