OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of “a” of Catlin Insurance Company, Inc. (CICI) (Houston, TX), Catlin Specialty Insurance Company (CSIC) and Catlin Indemnity Company (CIND). CICI, CSIC and CIND participate in the Catlin U.S. intercompany pooling agreement known as the Catlin U.S. Pool. The outlook for all ratings is stable. All companies are domiciled in Dover, DE unless otherwise specified, and are ultimately owned by Catlin Group Limited (CGL) (Bermuda).
These ratings are based upon CICI, CSIC and CIND’s strategic roles and importance as U.S. domestic insurers within the Catlin group. In addition, the ratings factor in the explicit and implicit support provided to the Catlin group in the form of quota share reinsurance with Catlin Re Switzerland Ltd (Switzerland) through its Bermuda branch and a guarantee on all third-party reinsurance recoverables by CGL. The ratings also reflect the implied commitment provided by the Catlin group to support the Catlin U.S. Pool’s ongoing expansion efforts in the United States.
The Catlin U.S. Pool maintains a solid level of risk-adjusted capitalization, continues to record profitable operating results and has expanded its role as a growth engine for the overall Catlin group. Operating results have been enhanced over the last several years through a conscious effort to secure rate increases and pursue careful underwriting processes. With the increased premium and exposure growth that has occurred over these years, particularly in the casualty lines, long term development patterns still need to manifest. As a result, A.M. Best will continue to closely monitor the reserve development and overall profitability of the Catlin U.S. Pool.
Positive rating actions are unlikely in the near future for CSIC, CICI and CIND.
Factors that may lead to negative rating actions include a material deterioration in the Catlin U.S. Pool’s risk-adjusted capitalization, significant weakening in its operating results, any negative rating actions taken on CGL and/or any lessening of support (implied or explicit) provided by CGL.
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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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