Ratings Recap: Elvia/Jefferson, Amedex

September 25, 2007

A.M. Best Co. has affirmed the financial strength rating of “A (Excellent) and the credit issuer rating of “a+” of Swiss-based Elvia Reiseversicherungs-Gesellschaft-AG (Elvia) and its US subsidiary, Jefferson Insurance Company of New York, with a stable outlook. “The affirmation reflects Elvia’s excellent business position as a leading European travel insurance and assistance provider, its excellent risk-adjusted capitalization and good operating performance,” said Best. The ratings also factor the importance of Elvia to its ultimate parent, Allianz AG, as a provider of added value insurance and assistance services to the group.

A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A-‘ (Excellent) and assigned an issuer credit rating (ICR) of “a-” to Amedex Insurance Company (Amedex-US) of Miami, Fla. Best also downgraded the FSR to ‘B++’ (Good) from ‘A-‘ (Excellent) and assigned an ICR of “bbb” to Bermuda-based Amedex Insurance Company. Best’s outlook for Amedex-US’ FSR is being revised to negative from stable, while the outlook for Amedex-Bermuda’s FSR is negative, and the outlook assigned to the ICRs is negative. “The ratings of Amedex-US recognize its volatile operating results, including a significant statutory loss in 2006 and the reduced level of capitalization on an absolute and risk-adjusted basis,” Best explained. “The operating loss primarily resulted from reserve strengthening, following a formal management review of claims per policy from its new parent company, British United Provident Association (BUPA), especially in regions that had been experiencing rapid growth.”

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