CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - FEBRUARY 28, 2019 10:22 AM (EST)
AM Best has assigned a Financial Strength Rating of A++ (Superior) and a Long-Term Issuer Credit Rating of “aa+” to Travelers Insurance Designated Activity Company (TIDAC) (Ireland), the new subsidiary of The Travelers Companies, Inc. (TRV). TIDAC is a member of TRV’s lead rating unit, Travelers Group (Travelers). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Travelers’s balance sheet strength, which AM Best categorises as strongest, as well as its very strong operating performance, favourable business profile and appropriate enterprise risk management. The ratings also reflect TIDAC’s importance to and integration within the Travelers group, in addition to the substantial reinsurance support the company receives from its immediate parent, Travelers Insurance Company Limited (TICL) (United Kingdom).
TIDAC enables the group to continue to service its policyholders across the European Economic Area (EEA), regardless of the terms of the United Kingdom’s withdrawal from the European Union (EU). The company benefits from strong explicit support from TICL, in the form of a significant whole account quota share and a stop loss “excess of assets over liabilities” cover that protects its minimum regulatory capital requirement under Solvency II.
AM Best expects TIDAC to underwrite a relatively small portfolio, mainly focused in property and general liability risks. The EU business previously written by TICL will be renewed into TIDAC beginning in March 2019. In addition, TICL’s historical EU liabilities will be transferred to the new entity via a Part VII transfer.
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 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.