LONDON--(BUSINESS WIRE)--AM 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 balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings of TTI reflect the fundamental role the company plays in TTB’s strategy, as well as the comprehensive reinsurance protection that it receives from TTB.
TTB’s balance sheet strength is underpinned by consolidated risk-adjusted capitalisation that is at the strongest level, as measured by Best’s Capital Adequacy Ratio, prudent reserving practices and a conservative investment strategy. An offsetting rating factor is TTB’s dependence on reinsurance for managing the group’s capacity. This is partially mitigated by the high credit quality of the reinsurers used, with which TTB has established relationships.
TTB is a specialist mutual insurance organisation, operating in the international transport and logistics industry. It offers property and liability risk cover for port, ship and logistics operators, and provides loss prevention and risk management services to its members. The mutual has a strong position in its niche market, which is highlighted by its excellent member retention and supported by its global presence. However, AM Best considers TTB’s business profile to be limited owing to its relatively small size and concentration by line of business.
TTB’s adequate operating performance is demonstrated by a five-year (2015-2019) weighted average combined ratio and return on equity of 97.7% and 5.0%, respectively, as calculated by AM Best. AM Best expects TTB to maintain resilient technical margins through the underwriting cycle.
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