Best’s News & Research Service - May 23, 2019 10:07 AM (EDT)
AM Best Affirms Credit Ratings of Through Transport Mutual Insurance Association Limited
- May 23, 2019 10:07 AM (EDT)
London //BestWire// - AM 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 AM 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, AM Best considers TT Club’s business profile to be limited owing to its relatively small size and concentration by line of business.
TTB’s balance sheet strength is underpinned by risk-adjusted capitalisation that 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 outward 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 95% and a return on equity of 5% over the 2014-2018 period. In 2018, the mutual recorded a strong underwriting result, as its performance benefited from better-than-expected loss reserve releases. Prospectively, TT Club is expected to generate modest technical profits through the underwriting cycle.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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