A.M. Best Co. announced that it has affirmed the financial strength rating of “A “(Excellent) of Heddington Insurance (UK) Ltd. (HUK), a captive company of ChevronTexaco Corporation. The outlook remains stable.
Best said it “deems HUK to be a core subsidiary of its immediate parent, Heddington Insurance Limited (HIL). HUK benefits from substantial reinsurance support from its parent in the form of an 80 percent quota share of business written.”
The rating agency also indicated that the “company’s prospective capitalisation is likely to remain excellent based on its low level of exposure net of reinsurance ceded despite an increase in its expected maximum loss and anticipated deterioration in earnings in 2004.
“A net loss for the full year 2004 of approximately $3 million is anticipated due to poor loss experience for the year (anticipated loss ratio of approximately 170 percent). In 2005, A.M. Best forecasts lower claims activity (anticipated loss ratio of approximately 50 percent) and a return to positive results after net investment income.”
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