Press Release - MARCH 14, 2019
AM Best Assigns Preliminary Credit Assessment to Transverse Insurance Company and Transverse Specialty Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 14, 2019
The PCAs reflect on a consolidated basis the balance sheet strength, which AM Best categorizes as very strong, as well as adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The very strong balance sheet assessment is based on a preliminary financing structure that projects supportive risk-adjusted capital that meets AM Best’s guidelines for newly formed organizations. This incorporates supportive risk-adjusted capital levels through a five-year start-up period. Operating performance is assessed as adequate based on the clearly defined business plan that contemplates a level of implementation and execution risk for a newly formed entity. Business profile is viewed as limited, as these companies will serve as fronting/transformer carriers. These new market entrants will require a period to establish their 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 organizations’ risk management benefits from an experienced management team cognizant of the key elements in their chosen niche.
This press release relates to Preliminary Credit Assessments that have been published on AM Best’s website. For all assessment information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual assessments 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 and Assessment 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 rating agency and information provider with a unique focus on the insurance industry.