This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Affirms Ratings Of Aspen Insurance Holdings Limited’s U.S. Subsidiaries

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of “a” of Aspen Specialty Insurance Company (ASIC) (Bismarck, ND) and Aspen American Insurance Company (AAIC) (Dallas, TX). Both companies are wholly owned subsidiaries of their ultimate parent, Aspen Insurance Holdings Limited (Aspen) (Bermuda) (NYSE:AHL). The outlook for all ratings is stable.

These ratings are based upon ASIC and AAIC’s strategic importance and roles in Aspen’s U.S. business platform. In addition, the ratings also reflect the explicit support provided via the substantial quota share reinsurance of ASIC and AAIC’s net business through their Bermuda-based affiliate, Aspen Bermuda Limited (ABL). Moreover, ABL also provides a guarantee for all of ASIC and AAIC’s third-party reinsurance recoverables. Additionally, ASIC’s balance sheet is further protected by an adverse development cover for its outstanding loss reserves as of December 31, 2008. The ratings also acknowledge the implied support of future parental commitment.

Both ASIC and AAIC continue to maintain solid stand-alone capitalization, which has been and continues to be enhanced by low underwriting and investment leverage as well as capital contributions from Aspen. While market competition continues to pose a significant challenge to ASIC and AAIC as both companies work to establish Aspen’s presence in the United States, pricing pressures appear to be diminishing as the commercial lines marketplace has been more receptive to rate increases recently. Toward this end, management has made significant investments in new underwriting teams and infrastructure. A.M. Best will continue to closely monitor the operating performance of both companies, with particular focus on execution and their ability to achieve business projections.

Any future rating actions for ASIC and AAIC will likely be in accordance with any future rating actions on ABL.

Factors that may lead to negative rating actions on both companies could result from their continued sub-par operating results, a material deterioration in their stand-alone risk-adjusted capitalization and/or any lessening of support (implied or explicit) provided by ABL.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,833.64 -94.56 -0.53%
S&P 500 2,081.34 -8.12 -0.39%
NASDAQ 4,923.3220 -16.0050 -0.32%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs