OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” ofTransportation Property and Casualty Company Inc.(TPCC) (British Columbia, Canada).

The ratings are based on TPCC’s excellent capitalization and operating performance and a strong enterprise risk management program. Also inuring to the benefit of the ratings is the captive’s favorable profile as part of the South Coast British Columbia Transportation Authority (TransLink). Partially offsetting these positive rating factors are TPCC’s relatively small scale of operations and high exposures.

TPCC is a pure captive insurance company that provides automobile physical damage, general liability and property insurance coverage solely to TransLink. TPCC has demonstrated its usefulness and effectiveness to TransLink over many years by providing flexibility for insurance program structuring and substantial insurance cost efficiencies. It is an integral part of its shareholder’s existing projects and future planning.

Key rating drivers that could lead to an upgrading of TPCC’s ratings are a stable underwriting performance as well as reduced overall net exposure over the next few years.

Factors that could lead to a negative outlook or a downgrading of the company’s ratings are a material loss of capital from either claims or investments, a reduced level of capital that does not support the ratings or an increase in net retention. TPCC’s ratings are somewhat linked to the rating of TransLink; therefore, unfavorable operating performance or material loss of capital could result in changes to the captive’s ratings.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world.

For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; “Alternative Risk Transfer (ART)”; “Evaluating Country Risk”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Janet Hernandez, 908-439-2200, ext. 5767
Senior Financial Analyst
janet.hernandez@ambest.com
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
steven.chirico@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Co.