A.M. Best Affirms Ratings of Titan Insurance Company Inc., A RRG

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Titan Insurance Company Inc., A RRG (Titan) (Charleston, SC). The outlook for both ratings is stable.

The ratings reflect Titan’s solid capitalization, historically profitable operating results and defined mission of providing claims made based contractual liability insurance coverage to Ethos Group, Inc. (Ethos) and its subsidiaries.

Partially offsetting these positive rating factors is Titan’s exposure to risk concentration since Ethos is Titan’s exclusive source of business. This is compounded by Ethos only selling automobile-related financial products; however, geographic diversification is adequate since Ethos sells products in 26 states. The automobile dealership business is particularly competitive, especially in the financial products category, which presents a situation where participants have a limited ability to control the rates of products offered.

A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.

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

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at http://www.ambest.com/ratings/methodology.