AM Best Revises Outlooks to Positive for Members of Titan Insurance Group

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Cronus Insurance Company (Irving TX) and Titan Insurance Company, Inc., A Risk Retention Group (Charleston, SC). Collectively, these companies are referred to as Titan Insurance Group (TIG), which operate under a pooling agreement.

These Credit Ratings (ratings) reflect TIG’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The revision in the outlooks to positive from stable reflect AM Best’s expectation that TIG will be able to maintain improvements in its very strong balance sheet strength assessment and continue to sustain its strong operating performance and effective capital management strategy. Improved balance sheet strength metrics have been driven by TIG’s strong operating profitability as reflected by its underwriting income, other income and net investment income. TIG maintains the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). While TIG started paying dividends to its shareholders in 2024, it is expected that surplus growth will be sustained and overall balance sheet strength metrics will remain steady over the medium term.

Titan was formed in 2001 as a risk retention group with the purpose of providing insurance coverage on contractual liabilities for extended vehicle service contracts and other vehicle related coverages issued by its members.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.