A.M. Best Affirms Credit Ratings of Through Transport Mutual Insurance Association Limited

Business Wire

LONDON--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of Through Transport Mutual Insurance Association Limited (TTB) (Bermuda) and its subsidiary, TT Club Mutual Insurance Limited (TTI) (United Kingdom). TTB and TTI collectively trade as TT Club. The outlook of these Credit Ratings (ratings) remains stable.

The ratings of TTB reflect its balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings of TTI reflect the fundamental role it plays in TT Club’s strategy, as well as the comprehensive reinsurance protection that is provided by TTB.

TT Club is a specialist mutual insurance organisation, operating in the international transport and logistics industry. It offers property and liability risk cover for port, ship and logistics operators, and provides loss prevention and risk management services to its members. The mutual has a strong position in its niche market, which is supported by its excellent member retention and global presence. However, TT Club’s business profile is considered limited owing to its relatively small size and concentration by line of business.

TTB’s balance sheet strength is underpinned by risk-adjusted capitalisation which is at the strongest level, as measured by Best’s Capital Adequacy Ratio, prudent reserving practices and a conservative investment strategy. An offsetting rating factor is the mutual’s dependence on its outwards reinsurance programme for capacity. This is partially mitigated by the high credit quality of the reinsurance panel and TT Club’s established relationships with its reinsurers.

TT Club’s adequate operating performance is demonstrated by a five-year weighted average combined ratio of 96% and a return on equity of 4.9% over the period 2013-2017. In 2017, the mutual recorded a marginal underwriting result, as its performance was negatively affected by claims from catastrophic events in North America. Prospectively, the mutual is expected to generate a small technical profit through the underwriting cycle and modest investment income.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Yevgine Asatryan

Financial Analyst

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Tim Prince

Director, Analytics

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Christopher Sharkey

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Jim Peavy

Director, Public Relations

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