OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Transamerica Casualty Insurance Company (Transamerica Casualty) (Columbus, OH), the property/casualty (P/C) subsidiary of Aegon N.V. (Aegon) [NYSE: AEG]. The outlook of these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect Transamerica Casualty’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also factor in rating enhancement from Transamerica Casualty’s ultimate parent, Aegon.
Transamerica Casualty has been a market leader in travel insurance, but product sales in 2018 are expected to decline significantly due to a strategic decision by Aegon to exit the Affinity, Direct TV and Direct Mail distribution channels. Future business prospects are to be determined.
Balance sheet strength is exhibited through a very strong level of risk-adjusted capitalization, good liquidity and a conservative investment portfolio. Solid underwriting results and stable net investment income have contributed to surplus growth. Transamerica Casualty carries the group’s brand name and is easily identifiable with the life/health affiliates that collectively make up the Aegon USA Group. In addition, Aegon has demonstrated a track record of supporting Transamerica Casualty over the long term as the sole U.S. P/C company within Aegon. Aegon’s support also has allowed the organization to take advantage of opportunities in underserved markets as management sees fit.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.