A.M. Best Assigns Ratings to NEWGT Reinsurance Company [Professional Services Close – Up]
The outlook assigned to both ratings is stable.
The ratings reflect NEWGT's stable operating profitability, aided by its retrocession coverage in its general account and the implicit support from the parent company,
NEWGT reported favorable operating performance in its general account over the past five years, mainly driven by its major line of marine cargo product, which is diversified globally. NEWGT's retrocession coverage against its major product line helped it to stabilize its underwriting results during the past years. As a single parent captive, NEWGT receives support from
Partially offsetting these positive rating factors include NEWGT's continuous expansion into the third party business, volatile operating performance in the segregated account and the uncertain outlook of the global economy. NEWGT will participate in Lloyd's Syndicates in 2013, which accounts for a significant proportion of its consolidated net premium income in the forecast periods. Although
Downward rating pressure could arise if there is a sharp decline in NEWGT's risk-adjusted capitalization led by a deterioration in its operating performance.
Best's Credit Rating Methodology can be found at ambest.com/ ratings/methodology.
((Comments on this story may be sent to [email protected]))
|Copyright:||(c) 2013 ProQuest Information and Learning Company; All Rights Reserved.|