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 it plays in
TT Club’s strategy, as well as the comprehensive reinsurance protection
that is provided by TTB.
TT Club 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 supported
by its excellent member retention and global presence. However, AM Best
considers TT Club’s business profile to be limited owing to its
relatively small size and concentration by line of business.
TTB’s balance sheet strength is underpinned by 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 the mutual’s
dependence on its outward reinsurance programme for capacity. This is
partially mitigated by the high credit quality of the reinsurance panel
and TT Club’s established relationships with its reinsurers.
TT Club’s adequate operating performance is demonstrated by a five-year
weighted average combined ratio of 95% and a return on equity of 5% over
the 2014-2018 period. In 2018, the mutual recorded a strong underwriting
result, as its performance benefited from better-than-expected loss
reserve releases. Prospectively, TT Club is expected to generate modest
technical profits through the underwriting cycle.
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 a
unique 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.
Contacts
Yevgine Asatryan
Senior Financial Analyst
+44
20 7397 0316
[email protected]
Tim Prince
Director, Analytics
+44 20 7397
0320
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
