OCTOBER 26, 2018 04:06 PM (EDT)
A.M. Best Affirms Credit Ratings of Trisura Guarantee Insurance Company and Trisura Specialty Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 26, 2018 04:06 PM (EDT)
The ratings reflect Trisura Guarantee’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Trisura’s balance sheet strength is supported by consistent growth in surplus and conservative reserving practices, but is offset partially by underwriting and investment leverage metrics. Operating performance remains favorable with solid operating performance further supported by consistent net investment income over the prior five-year period.
Positive rating pressures may materialize if the company were to successfully expand its geographic and market presence while maintaining a trend of favorable underwriting performance in excess of peer averages. Negative rating pressures may materialize if the company were to incur significant losses in its capitalization, or experience a substantial reduction in the profitability of its core book of business, or encounter substantial adverse reserve development relative to peers and the industry averages.
The ratings of Trisura Specialty reflect its balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate ERM.
Trisura Specialty continues to expand its operations through 2018, meeting management’s projections to date. Underwriting performance is appropriate at this time, and A.M. Best expects it to improve as the company continues to scale operations.
Positive rating pressures could occur if the company is able to demonstrate the implementation of its strategy through a trend of consistent and favorable operating results in excess of peer performance. Negative rating pressures could occur if the company is unable to leverage existing relationships to obtain favorable business, or is unable to maintain quality reinsurance partners, or the company demonstrates an inability to properly manage the degree of risk on its books resulting in adverse performance.
Both ratings also consider the benefits received from the publicly traded ultimate parent, Trisura Group Ltd. [TSX: TSU]. Trisura Group was formed in June 2017 after spinning off from its prior parent, Brookfield Asset Management Inc., and is now a pure insurance operation. Trisura Specialty receives rating enhancement from the parent’s explicit support for the smaller operating entity.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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