Fitch Ratings has upgraded the insurer financial strength rating of World-Wide Reassurance Company to A from A- and removed it from Rating Watch Evolving. The rating outlook is now stable.
Fitch Ratings has upgraded the insurer financial strength rating of World-Wide Reassurance Company to A from A- and removed it from Rating Watch Evolving. The rating outlook is now stable.
The rating agency said the upgrade reflects the explicit support, in the form of an unconditional guarantee, given by the A-rated Scottish Annuity & Life Insurance Company to World-Wide Reassurance.
Fitch also said it continues to believe World-Wide Reassurance continues to demonstrate good capitalisation on a stand-alone basis.
However, net assets decreased to £22.8m from £29.8m during 2001 as a result of a £7.6m dividend payment.
Fitch added that it also believes World-Wide Reassurance derives a strategic advantage from focusing on specialist business areas.
"The company's size coupled with its experienced management team enables it to compete satisfactorily in its key markets. Partially offsetting these positive factors is the company's relatively small capital base compared to other international reinsurers," a spokesman said.
