AM Best has affirmed the financial strength rating (FSA) of A- (Excellent) of Through Transport Mutual Insurance Association (TTB) (Bermuda) and its subsidiary, TT Club Mutual Insurance Limited (TTI) (United Kingdom).
TTB and TTI collectively trade as TT Club. The outlook for each rating remains stable.
the ratings of TTB reflect its excellent consolidated risk-adjusted capitalisation, strong reserving practices and established specialist business profile in the transport industry, according to AM Best.
The ratings of TTI reflect the fundamental role it plays in TT Club’s strategy and the reinsurance protection provided by TTB.
TTB’s consolidated risk-adjusted capitalisation is expected to remain strong, supported by positive and relatively stable operating performance and a reserving approach that sets reserves with a significant margin above actuarial best estimate, said the firm.
Capitalisation is enhanced by a $30 million subordinated loan issued in 2006. A partly offsetting factor is TT Club’s dependence on reinsurance to support its relatively large maximum gross line size. However, the risks associated with high reinsurance dependence are partly mitigated by the high credit quality of its reinsurance panel, said AM Best.
The assessment also considers TT Club’s underwriting approach of targeting a modest underwriting profit through the cycle. The mutual reported a decline in underwriting profit to $5.7 million in 2015 (2014: $11.9 million), reflecting a higher number of claims at the upper end of its retention.
“TT Club has a strong specialist business profile in the international transport and logistics insurance market, covering property and liability risks for port, ship and logistics operators, said AM Best. “It provides loss prevention and risk management services to the industry, and its superior service standard supports a policyholder retention rate of over 90 percent.”
AM Best, Through Transport Mutual Insurance Association, TTB, c, Ratings, Insurance, Bermuda, UK