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Disparate Treatment Discrimination
In the employment context, refers to when a person isn't treated in the same way as others. In this instance, the different treatment is based on one or more of the protected factors (race, age, sex, national origin) and it's intentional.
Employment Practices Liability insurance polices provide coverage for claims alleging disparate treatment discrimination.
Insurance Industry News from ProgramBusiness.comACE Ratings
June 10, 2003—A.M. Best said it has downgraded its ratings for Bermuda-based ACE Limited's debt securities as well as those for securities guaranteed by ACE while affirming the financial strength ratings of ACE's operating units.
In today's ratings action, the Oldwick, N.J.-based rating agency lowered ACE's senior debt rating to "triple-b-plus" from "a" and downgraded subordinated notes to "triple-b" from "a-minus". ACE's trust preferred securities were also lowered, to "triple-b-minus" from "a-minus".
Additionally, the rating agency has assigned a "triple-b-minus" rating to ACE's recently issued $575 million of cumulative redeemable preferred shares. Best noted that all ratings have been assigned "stable" outlooks.
Commenting on its debt ratings downgrades, the agency said that historically, ACE's financial leverage has been closer to the higher end of Best's range for the company's debt ratings, and that these downgrades reflect this high level of financial leverage. Best also noted that downgrades reflect ACE's weakened--albeit adequate--surplus position of its operating units.
The ratings agency expressed more confidence in ACE's financial strength, and affirmed those ratings. "The financial strength ratings reflect ACE's solid capitalization, diversified earnings and product line, strong competitive position and global name recognition," Best said.
The rating agency added that these strengths come from ACE's focus on operating strategy, disciplined underwriting, conservative reserving methodology and an experienced management team. Furthermore, tightened terms and conditions, along with continued rate hikes, will strengthen ACE's overall earnings this year, it predicted.
"Those earnings are expected to replenish the company's capital base, which has been weakened by the 2002 asbestos reserve charge and the 2001 losses from the World Trade Center tragedy," Best said.
ACE Limited sells property-casualty insurance and reinsurance in the United States and about 50 other countries through its subsidiaries. Last year, the company posted a net income of $77 million on revenues exceeding $7 billion.
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