A.M. Best Upgrades the Ratings of Torus National Insurance Company

LONDON--(BUSINESS WIRE)--A.M. Best Europe – Ratings Services Limited has upgraded the financial strength rating to A- (Excellent) from B+ (Good) and issuer credit rating to “a-” from “bbb-” of Torus National Insurance Company (Torus National) (formerly TIG Indemnity Company) (Wilmington, DE). The ratings have been removed from under review with positive implications and assigned a stable outlook. Torus National is a subsidiary Torus Insurance Holdings Limited (Torus).

“Risk Management and the Rating Process for Insurance Companies”

These actions follow the completion of Torus National’s acquisition by Torus from TIG Insurance Company, a holding company that is ultimately owned by Fairfax Financial Holdings Limited. Prior to its purchase, Torus National had been in run off since 2002.

The ratings of Torus National reflect the explicit support provided by Torus Insurance (UK) Limited (Torus UK), through the provision of a 65% whole account quota share agreement and aggregate stop loss protection. Torus UK benefits from a similar reinsurance arrangement with Torus Insurance (Bermuda) Limited, the main risk bearing company of the Torus Group. Additionally, Torus National’s ratings reflect the expectation that risk-adjusted capitalisation will be maintained at a strong level on a standalone basis.

Torus National will operate in the U.S. admitted market writing a portfolio of property, casualty and specialty risks, which complements Torus’ existing business.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; “Natural Catastrophe Stress Test Methodology” and “Rating New Company Formations”. Methodologies can be found at www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures, A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.