Press Release - AUGUST 28, 2019
AM Best Assigns Credit Ratings to Transverse Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 28, 2019
The ratings reflect Transverse’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The balance sheet assessment of very strong is based on initial financing capacity that meets AM Best’s guidelines for newly formed organizations and provides supportive risk-adjusted capital levels through a five-year startup period. Expected capital levels are measured against reinsurance recoverable amounts, including credit risk and reinsurance dependence factors. Operating performance is assessed as adequate based on Tranverse’s clearly defined business plan that contemplates a level of implementation and execution risk for a newly formed entity. AM Best views Transverse’s business profile as limited, as the company will serve as fronting/transformer carrier, and will require a period to establish its brand and market position. A clearly defined ERM structure includes risk appetite and tolerance statements that focus on concerns specific with the business profile. These organization’s risk management benefits from an experienced management team cognizant of the key elements in their chosen niche.
Negative rating actions could occur if risk-adjusted capital declines or actual results (such as underwriting leverage ratios) fall adversely outside initial projections, as well as if the company is unable to gain traction within the parameters of the business profile, or its risk appetite and tolerance levels prove to be inadequate for the company’s profile.
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.
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