Press Release - APRIL 03, 2019
AM Best Downgrades Credit Ratings of Tokio Marine GRV Re, Inc.
FOR IMMEDIATE RELEASE
OLDWICK - APRIL 03, 2019
The ratings reflect TMGRV Re’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and very strong enterprise risk management (ERM).
The ratings downgrade reflects a change in business profile whereby TMGRV Re, formerly known as HCC Specialty Insurance Company, was converted into an affiliated internal reinsurance company. It will assume business solely from companies within the Tokio Marine & Nichido Fire (TMNF) organization. Previously, the company derived its rating through explicit support provided by an inter-company reinsurance agreement with Houston Casualty Company.
The ratings reflect the capacity available in the balance sheet for the expected level of assumed risk. Operating performance is placed at the adequate level based on the clearly defined business plan, which contemplates a level of execution risk. AM Best views the business profile as limited under the implemented transition to a reinsurance company structure. The ratings benefit from implicit support provided by affiliated entities, including an expectation of capital contributions if needed, day-to-day management of operations, and inclusion in TMNF’s robust ERM processes and procedures.
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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