Best’s News & Research Service - August 12, 2015 09:12 AM (EDT)
A.M. Best Affirms Ratings of Transportation Property and Casualty Company Inc.
- August 12, 2015 09:12 AM (EDT)
Oldwick //BestWire// - A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of Transportation Property and Casualty Company Inc. (TPCC) (British Columbia, Canada). The outlook for both ratings is stable.
The ratings reflect TPCC's excellent risk-adjusted capitalization, strong enterprise risk management program and highly experienced management team. Also inuring to the benefit of the ratings is the captive's favorable profile as part of the South Coast British Columbia Transportation Authority (TransLink). Partially offsetting these positive rating factors are TPCC's relatively small scale of operations, high exposures and the volatility of its operating results in recent years.
TPCC is a pure captive insurance company that provides automobile physical damage, general liability and property insurance coverage solely to TransLink. TPCC has demonstrated its usefulness and effectiveness to TransLink over many years by providing flexibility for insurance program structuring and substantial insurance cost efficiencies. TPCC is an integral part of TransLink's existing projects and future planning.
Factors that could lead to a downgrade of TPCC's ratings or a revised outlook include a reduced level of risk-adjusted capitalization that does not support the ratings or an increase in net retention. TPCC's ratings are somewhat linked to the credit assessment of TransLink; therefore, unfavorable operating performance or a material loss of capital at TransLink could result in changes to the captive's ratings. Alternatively, factors that could lead to a rating upgrade include TPCC sustaining favorable operating profitability while maintaining strong risk-adjusted capital levels.
A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center.
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