OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Transmonde Services Insurance Company Limited (Transmonde) (Hamilton, Bermuda). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect Transmonde’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Transmonde’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), was categorized as strongest as of year-end 2018. The balance sheet strength also benefits from low underwriting leverage and good financial flexibility, which stems from the company’s affiliation to SGS SA (SGS), a publicly traded Swiss company [SWX: SGSN]. Partially offsetting rating factors include the investment concentration in a single parental loan and the high dividends payments made to the parent over recent years. Transmonde has a track record of strong operating performance, underpinned by excellent underwriting earnings and a stable level of interest income. Thanks to its lean operating model and robust loss controls in place, the company has maintained a very low expense ratio and loss ratio throughout the years. As a single-parent captive, Transmonde writes a portfolio of professional, general and pollution liability risks for the insurance needs of SGS. SGS is a leading multinational group specialized in inspections, verification, testing and certification across several industries worldwide. Transmonde is a key component of the risk management framework of the wider organization, and its risk capabilities are aligned appropriately with its risk profile.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.