Press Release - OCTOBER 01, 2019
AM Best Assigns Credit Ratings to American Transportation Group Insurance Risk Retention Group, Inc.
FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 01, 2019
The ratings reflect ATGI’s balance sheet strength, which AM Best categorizes as weak, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
ATGI’s weak balance sheet assessment reflects the organization’s adequate risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as of the second quarter of 2019 and its limited financial flexibility and scale of operations.
ATGI’s operating performance is assessed as adequate due to reasonable performance projections according to the organization’s five-year business plan. ATGI’s business profile is assessed as limited, due to product line concentration in commercial automobile liability coverages. Additionally, operations are spread geographically across a wide region of the United States. ATGI’s ERM is assessed as appropriate due to the organization’s evolving risk management framework, stringent underwriting criteria and prospective policyholder assessments that are utilized to identify and retain quality risks.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive .
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 credit rating agency and information provider with an exclusive focus on the insurance industry.