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
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
A.M. Best Co.Janet Hernandez, 908-439-2200, ext. 5767Senior
Chirico, CPA, 908-439-2200, ext. 5087Assistant Vice
Morrow, 908-439-2200, ext. 5378Senior Manager, Public
Peavy, 908-439-2200, ext. 5644Assistant Vice President,
Source: A.M. Best Co.