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ACE Group
Standard & Poors, Dec 2002
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Abstract
The insurer financial strength ratings on the members of the ACE Group (ACE; see Table 5) are based on the following: Very strong capital adequacy. ACE's 2001 pro forma consolidated capital adequacy ratio was 166%, which is very strong. This figure excludes ACE Guaranty Corp. and ACE Capital Re International Ltd.'s (ACRI) capital requirements but includes World Trade Center (WTC) losses and $1.15 in billion capital raising. ACE's capital should allow the group to capitalize on the (re)insurance market's prospective need for financial strength and capacity in 2002. Conversely, ACE's capital structure contains a large amount of goodwill (43% after public offering), run-off, and latent liability exposure, and it is prone to large loss activity that could constrain prospective earnings...
Companies mentioned in this report are: ACE Property & Casualty Insurance Co.,Assured Guaranty Corp,ACE Ltd.,Century Indemnity Co.,Assured Guaranty Mortgage Insurance Company,Assured Guaranty Re Overseas Ltd.,ACE Capital Title Reinsurance Co.,Assured Guaranty Re Ltd.,ACE Insurance Ltd. (Australia)
Action: Review
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