OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-“ for Trans-City Casualty Insurance Company (TCC) and Trans-City Life Insurance Company (TCL). Both companies are domiciled in Scottsdale, AZ.
The Credit Ratings (ratings) of TCC reflect its 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 (ERM). TCL’s ratings reflect its balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile, appropriate ERM and support from TCC.
The revision of the outlooks to negative reflect the year-over-year decline in operating performance and uncertainty of the current workers’ compensation marketplace and macroeconomic conditions affecting automobile dealership groups in Arizona. The company has seen a consistent decline in premium volume, and will remain challenged to grow its business. As a result, key operating performance metrics, such as underwriting and operating cash flows, as well as its expense ratio, have been negatively impacted. If these trends continue, there could be a downward revision in the company’s operating performance building-block assessment, which also would affect the level of support available to TCL and reduce the amount of rating lift by one notch.
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