AM Best Upgrades Issuer Credit Ratings of MS Transverse Insurance Group’s Members

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of MS Transverse Specialty Insurance Company, MS Transverse Insurance Company and TRM Specialty Insurance Company. These companies are domiciled in Dallas, TX, and collectively are referred to as MS Transverse Insurance Group (MS Transverse). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MS Transverse’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

In addition, MS Transverse’s ratings benefit from rating enhancement, in the form of lift, due to the support provided by its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD), and its lead insurance entity, Mitsui Sumitomo Insurance Company, Ltd (MSI).

The Long-Term ICR upgrade reflects the significance of the unconditional financial guarantee agreement put in place in 2023 by MSI, as well as the increased operational integration with the North American subsidiaries of MSI. This agreement confirms MSI’s commitment to support MS Transverse’s growth opportunities in the U.S. managing general agent (MGA) fronting market.

MS Transverse’s ratings are supported by the group’s risk-adjusted capitalization at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). The overall strength of its balance sheet remains very strong despite a decline in the BCAR in 2023 due to the significant growth of premiums, reserves and reinsurance recoverables. AM Best expects MS Transverse’s BCAR to remain at least in the very strong range in the near term. Solid underwriting results and net investment income continue to drive the company’s operating performance. MS Transverse is a among the top 10 fronting carriers in the U.S. MGA market based on direct premiums written and is expected to advance its position further in the near term.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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