AM Best Information Services

JUNE 02, 2021 01:21 PM (EDT)

AM Best Affirms Credit Ratings of Through Transport Mutual Insurance Association Limited

 Barnaby Unwin Hoskins
Financial Analyst
+44 20 7397 0327

Ghislain Le Cam, CFA, FRM
Director, Analytics
+44 20 7397 0268

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644


LONDON - JUNE 02, 2021 01:21 PM (EDT)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Through Transport Mutual Insurance Association Limited (TTB) (Bermuda) and its subsidiary, TT Club Mutual Insurance Limited (TTI) (United Kingdom). TTB and TTI collectively trade as TT Club. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TTB’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings of TTI reflect its importance to TTB due to the fundamental role the company plays in TTB’s strategy, and the comprehensive reinsurance protection that it receives from TTB.

TTB’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation well in excess of the minimum required for the strongest assessment, as measured by Best’s Capital Adequacy Ratio (BCAR). The balance sheet strength also benefits from prudent reserving practices and a conservative investment strategy. An offsetting rating factor is TTB’s dependence on reinsurance, used to manage the group’s capacity. However, the associated risks are mitigated partially by the high credit quality of the reinsurers used, with which TTB has established relationships.

TTB’s adequate operating performance is demonstrated by a five-year (2016-2020) weighted average combined ratio and return on equity of 97.2% and 6.5%, respectively, as calculated by AM Best. AM Best expects the group to maintain resilient technical margins through the underwriting cycle, driven by sustained underwriting discipline.

TTB is a specialist mutual insurance organisation, operating in the international transport and logistics industry. It offers property and liability risk cover for port, ship and logistics operators, and provides loss prevention and risk management services to its members. The mutual has a strong position in its niche market, which is highlighted by its excellent member retention and supported by its global presence. However, AM Best considers TTB’s business profile to be limited, owing to its relatively small size and concentration by line of business.

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 specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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