OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and the issuer credit rating to “bbb” from “bbb-”of Tall Pines Insurance Company (Burlington, VT). The outlook for both ratings is stable.
The rating upgrades reflect Tall Pines’ excellent capitalization levels, quality management team with numerous years of industry experience and a strong risk management program. Tall Pines’ ratings are influenced by the credit rating of its parent company, Valhi Inc., along with the parent’s improved ability to support the captive’s capital position. Partially offsetting Tall Pines’ positive rating factors are its narrow business scope as a single parent captive and limited stand-alone financial flexibility
Positive rating triggers include continued maintenance of Tall Pines’ strong risk-adjusted capitalization and continued favorable operating results at Valhi Inc. Potential negative rating triggers could be caused by adverse worldwide economic conditions affecting Valhi Inc. and Tall Pines. Additional negative triggers could include deterioration of the parent’s credit profile and a decline in the risk-adjusted capitalization of the captive.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Evaluating Non-Insurance Ultimate Parents”; “Understanding BCAR for Property/Casualty Insurers”; “Catastrophe Analysis in A.M. Best Ratings”; and “Alternative Risk Transfer (ART).” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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