What’s new: In brief (April 13, 2005)

A.M. Best has produced a methodology for the equity credit it gives for the use of hybrid securities issued by insurers. Specifically, it looks at the assessment of the impact of these instruments on financial ratios and financial flexibility of the rated entity. Hybrid securities are typically in the form of preferred stock, trust preferred or convertible security, are much like common equity, but can have features which give them debt characteristics to some degree over time. This proportion of equity to debt characteristics (i.e. how “equity-like” or “debt-like” the security is based on seniority, maturity and cash-flow flexibility provided by its terms and features) is the starting point of the rater’s analysis.

Cunningham Lindsey International is acquiring adjusting firm Axis USA. The high-end specialty adjusting company is located in New York and Los Angeles, providing claims services to Fortune 500 companies and other corporations in the U.S. and abroad. The combined entity will operate as Cunningham Lindsey Axis and will not impact the operations of Cunningham Lindsey U.S. Inc.

The 6th Women in Insurance Cancer Crusade (WICC) Golf Tournament is set for Monday, July 18 at Angus Glen Golf Club. This ever popular event always fills up fast, so registrants and sponsors are urged to sign up early. More details can be found at www.wicc.ca.