Press Release - OCTOBER 30, 2019

AM Best Affirms Credit Ratings of Transatlantic Reinsurance Company and Alleghany Corporation


CONTACTS:
 Mariza Costa
Senior Financial Analyst
+1 908 439 2200, ext. 5154
mariza.costa@ambest.com

Ben Diaz-Clegg
Financial Analyst
+44 20 7397 0293
ben.diaz-clegg@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 30, 2019
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Transatlantic Reinsurance Company (New York, NY) and its subsidiaries (collectively referred to as TransRe). In addition, AM Best has affirmed the Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) of “a-” of Alleghany Corporation (Alleghany) [NYSE: Y] and Transatlantic Holdings, Inc. Alleghany and Transatlantic Holdings, Inc. are headquartered in New York, NY.

Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” of RSUI Indemnity Company and its reinsured subsidiaries, collectively referred to as RSUI Group (RSUI) (headquartered in Atlanta, GA).

AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” of Capitol Indemnity Corporation and its two subsidiaries, which operate under a pooling agreement, collectively referred to as CapSpecialty Insurance Group (CapSpecialty) (headquartered in Middleton, WI).

The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.)

The ratings of TransRe reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management (ERM).

TransRe continues to maintain a robust business profile with a highly diversified book of business in terms of geography and product offerings. TransRe also maintains the strongest level of risk-adjusted capitalization even under stressed scenarios and the quality of capital is considered a positive for the ratings. TransRe consistently has delivered solid results over the reinsurance cycle, and although it remains exposed to catastrophic events worldwide, it is expected to produce favorable earnings driven by underwriting income and complemented by investment income.

The ratings of RSUI reflect the group’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate ERM.

RSUI continues to maintain an exceptional track record of strong operating performance driven by solid underwriting results that have consistently outperformed the industry. The group has been able to successfully remain relevant in a highly competitive environment and AM Best expects that RSUI will continue to maintain a strong position in the market and will continue to deliver strong results and maintain the strongest level of risk-adjusted capitalization.

The ratings of CapSpecialty reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM.

CapSpecialty’s operating performance is considered marginal, which is largely reflective of its overall return metrics and an expense ratio that underperforms the industry. However, CapSpecialty continues to reposition its book of business to a more prudent risk selection and a loss ratio that is well below its peers. Going forward, AM Best expects CapSpecialty to continue working toward improving its expense ratio and deliver operating results that are more in line with the industry.

Alleghany’s ratings are based on the organization’s historical earnings results, its low levels of financial leverage and favorable financial flexibility, as well as its consistent track record of supporting its insurance operations.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed with stable outlooks for Transatlantic Reinsurance Company and its following subsidiaries:


  • TransRe Europe S.A.

  • TransRe London Limited

  • Fair American Insurance and Reinsurance Company

  • Fair American Select Insurance Company

  • Calpe Insurance Company Limited

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed with stable outlooks for the following members of RSUI Group:


  • RSUI Indemnity Company

  • Landmark American Insurance Company

  • Covington Specialty Insurance Company

The FSR of A (Excellent) and Long-Term ICRs of “a” have been affirmed with stable outlooks for the following members of CapSpecialty Insurance Group:


  • Capitol Indemnity Corporation

  • Platte River Insurance Company

  • Capitol Specialty Insurance Corporation

The following Long-Term IRs have been affirmed with stable outlooks:

Alleghany Corporation—

— “a-” on $300 million 5.625% senior unsecured notes, due 2020

— “a-” on $400 million floating rate senior unsecured notes, due 2022

— “a-” on $300 million 4.9% senior unsecured notes, due 2044

Transatlantic Holdings Inc.—

— “a-” on $350 million 8% senior unsecured notes, due 2039

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.


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