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 Global Indemnity Plc And Its Subsidiaries

A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a” of Wind River Reinsurance Company, Ltd. (Wind River Re) (Hamilton, Bermuda) and its U.S. subsidiaries. Concurrently, A.M. Best has affirmed the ICR of “bbb” of Wind River Re’s ultimate parent holding company, Global Indemnity plc (Global Indemnity) (Dublin, Ireland) [NASDAQ: GBLI].

Additionally, A.M. Best has affirmed the indicative ratings on the shelf registration of “bbb” on senior unsecured debt, “bbb-” on subordinated unsecured debt and “bb+” on the preferred stock of Global Indemnity. The outlook for all ratings is stable. (See below for a detailed listing of the companies.)

The ratings for Wind River Re reflect its strong capitalization and financial flexibility; improving underwriting results and its dedication to risk management to better contain catastrophe losses. The company’s strong capital position is reflective of its limited premium base and conservative balance sheet, as well as the support and financial flexibility provided by Global Indemnity. The ratings also recognize the historical profitability of Wind River Re’s U.S. subsidiaries, which operate under one intercompany reinsurance pooling agreement. The U.S. insurance subsidiaries cede 50% of its net retained liabilities to Wind River Re. In 2011, new management deliberately cancelled several unprofitable reinsurance treaties. Wind River Re has repositioned itself in the underwriting of conventional treaty reinsurance, primarily catastrophe-oriented placements and focused on reducing its catastrophe related retentions and reinsurance in the U.S. insurance operations.

These positive attributes are tempered by the organization’s potential exposure to future weather-related events, high underwriting expenses and increasing risk in its investment portfolio. It is unclear as to whether new risk mitigation strategies are adequate to withstand various levels of catastrophes. Nonetheless, management has implemented an enterprise-wide emphasis on premium adequacy and underwriting profitability as well as exiting certain unprofitable classes of business. Expenses seem well-controlled but create the higher than average expense ratio when combined with lower premiums. The company’s equity leverage is growing relatively quickly due to capital appreciation in the recently strong equity markets; however, there are no exposure concentrations.

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs