A.M. Best Affirms Ratings of Optimum Reassurance Inc. and Optimum Re Insurance Company
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OLDWICK, N.J.--(Business Wire)-- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of "a-" of Optimum Reassurance Inc. (Montreal, Quebec) and its affiliate, Optimum Re Insurance Company (Dallas, TX) (collectively known as Optimum Re). The outlook for all ratings is stable. The rating affirmations reflect that Optimum Re has consistently grown net premiums and net earnings, is a well regarded player in the life reinsurance industry and has fared better in terms of asset write-downs than a number of larger direct life writers and life reinsurers. Nevertheless, Optimum Re is small in absolute terms, and the ratings reflect the operating limitations imposed by the organization`s scale. Optimum Re has developed profitable niches, such as out-of-country medical in Canada, while serving small to large life insurers in the individual and group segments in Canada and in the United States. While generally paying dividends to their common shareholders, the companies have maintained solid risk-adjusted capitalization by retroceding out a sizable fraction of assumed insurance risk. Investment risk is considered very manageable by A.M. Best as Optimum Re mainly invests in federal and provincial bonds in Canada and treasuries and high quality corporate bonds in the United States. For Best`s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. A.M. Best Co. Analysts Richard Baldwin, 908-439-2200, ext. 5664 richard.baldwin@ambest.com or William Pargeans, 908-439-2200, ext. 5359 william.pargeans@ambest.com or Public Relations Jim Peavy,908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow,908-439-2200, ext. 5378 rachelle.morrow@ambest.com Copyright Business Wire 2009
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