A.M. Best Affirms Credit Ratings of Travelers Insurance Company Limited
The ratings reflect TICL’s balance sheet strength, which
The ratings also reflect the support provided by the
TICL maintains very strong risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), with a sufficient cushion to absorb higher-than-expected losses. In recent years, the negative impact of operating losses on available capital has been offset by a reduction in the level of assets pledged as funds at Lloyd’s to support the underwriting of a Lloyd’s syndicate managed by an affiliate.
TICL is a specialist underwriter of liability and commercial property business in the U.
TICL’s underwriting record is weak, as demonstrated by a five-year average combined ratio of 124%. Performance has been affected negatively by a significant reduction in premium income, weather losses and reserve strengthening. In 2016 and 2017, the company has implemented a range of underwriting actions and cost saving initiatives in an effort to improve underwriting performance. These are expected to have a positive impact on operating results. Investment income is likely to remain modest, reflecting a conservative investment strategy and the prevailing low interest rate environment.
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
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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