A.M. Best Affirms Ratings of Travelers Insurance Company Limited
2008-11-17 23:25:01 -
www.ambest.com - A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating (ICR) of "a+" of Travelers Insurance Company Limited (TIC) (United Kingdom). The outlook for both ratings remains stable.
The ratings continue to reflect TIC"s excellent risk-adjusted capitalisation and operating performance as well as its strong UK business profile. The ratings also factor explicit parental support in the form of a guarantee in respect of all TIC"s liabilities provided by St. Paul Fire and Marine Insurance Company, a subsidiary of TIC"s ultimate parent, The Travelers Companies, Inc. (St. Paul, MN) [NYSE: TRV].
TIC is expected to maintain excellent risk-adjusted capitalisation in 2008 supported by strong underwriting performance and solid anticipated investment returns driven by the company"s conservative investment strategy (TIC has no equity investments). A.M. Best anticipates an improvement in pre-tax profit in 2008 from GBP 78.2 million in 2007. The increased level of profit expected in 2008 is likely to be supported by a higher prior year reserve release (up from 36 million in 2007) and less severe catastrophe experience compared with 2007, which was affected by UK flood losses.
In A.M. Best"s opinion, TIC has a strong business profile in the UK as a leading underwriter in the specialist commercial lines market. As a result of continuing strong competition in the UK in 2008, A.M. Best anticipates modest growth of less than 5% in gross premiums written (2007 gross premiums written: GBP 278 million).
For Best"s Ratings, an overview of the rating process and rating methodologies, please visit cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ...
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ...
A.M. Best
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