LONDON--(BUSINESS WIRE)--A.M. 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 excellent consolidated risk-adjusted capitalisation, strong reserving practices and established specialist business profile in the transport industry. The ratings of TTI reflect the fundamental role it plays in TT Club’s strategy and the reinsurance protection provided by TTB.
A.M. Best expects TTB’s consolidated risk-adjusted capitalisation 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. Capitalisation is enhanced by a USD 30 million subordinated loan issued in 2006. A partly offsetting rating 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 mitigated partly by the high credit quality of its reinsurance panel.
A.M. Best’s 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 USD 2 million in 2016 (2015: USD 5.7 million), reflecting lower prior-year reserve releases in 2016 compared with 2015.
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. It provides loss prevention and risk management services to the industry, and its superior service standard supports a policyholder retention rate of over 90%.
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