|Joni Cerbone |
Senior Financial Analyst
+1 908 439 2200, ext. 5726
+1 908 439 2200, ext. 5696
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 11, 2020 02:36 PM (EST)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Trusted Resource Underwriters Exchange (TRUE) (Tampa, FL). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect TRUE’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The balance sheet strength assessment of strong is based on initial risk-adjusted capital capacity that meets AM Best guidelines for newly formed entities through a five-year start-up period. Capital levels are measured against a risk adverse investment strategy and TRUE’s intentions to maintain a robust reinsurance program backed by highly rated reinsurers. AM Best assesses TRUE’s operating performance as adequate based on the exchange’s clearly defined five-year business plan that contemplates implementation and execution risk for the new exchange. The company’s business profile is considered limited. TRUE will initially operate with a concentration in Florida with a select market and will require a period of time to establish its brand. The company’s ERM program, considered appropriate, will adopt a proven structure in the “three lines of defense” approach. The assigned ratings consider financial and operational support provided by American Family Insurance Group, which is shown by its long term commitment of capital to TRUE through surplus notes, anticipated participation in the reinsurance program and supporting select day-to-day services.
Negative rating action could occur with declines in risk-adjusted capital, actual results falling adversely outside the initial projections, the enterprise being unable to gain traction within the parameters of its business profile, or risk appetite and tolerance levels proving to be inadequate for the organization’s profile.
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 Guide to 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, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.