A.M. Best Affirms Credit Ratings of Transatlantic Reinsurance Company and Alleghany Corporation
03 November 2018 - 6:54AM
Business Wire
A.M. Best has affirmed the Financial Strength Rating
(FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “aa-” of Transatlantic Reinsurance Company and
its subsidiaries (collectively referred to as TransRe). In
addition, A.M. Best has affirmed the Long-Term ICRs and the
Long-Term Issue Credit Ratings (Long-Term IRs) of “a-” of Alleghany
Corporation (Alleghany) [NYSE: Y] and Transatlantic Holdings Inc.
TransRe and Alleghany are headquartered in New York, NY.
Concurrently, A.M. Best has affirmed the FSR of A+ (Superior)
and the Long-Term ICRs of “aa-” of RSUI Indemnity Company and its
reinsured subsidiaries, collectively referred to as RSUI Group
(RSUI) (headquartered in Atlanta, GA).
A.M. Best also has affirmed the FSR of A (Excellent) and the
Long-Term ICRs of “a” of Capitol Indemnity Corporation and its two
subsidiaries, which operate under a pooling agreement, collectively
referred to as CapSpecialty Insurance Group (CapSpecialty)
(headquartered in Middleton, WI).
The outlook for each of these Credit Ratings (ratings) is
stable. (Please see below for a detailed listing of the companies
and ratings.)
The ratings reflect TransRe’s balance sheet strength, which A.M.
Best categorizes as strongest, as well as its adequate operating
performance, very favorable business profile and appropriate
enterprise risk management (ERM).
TransRe’s maintains a well-regarded business profile attributed
to its book of business that is highly diversified by product and
geography. TransRe also maintains favorable levels of risk-adjusted
capitalization even under stressed scenarios and quality of capital
is considered a positive rating aspect. Furthermore, TransRe has
had consistent favorable prior year reserve releases on both a
calendar and accident year basis in each of the past 10 years.
While its operating performance is in line with peers, A.M. Best
continues to expect that TransRe will produce favorable earnings,
driven by underwriting income, with lower volatility relative to
its peers over the course of the full cycle.
The ratings of RSUI reflect the group’s balance sheet strength,
which A.M. Best categorizes as strongest, as well as its strong
operating performance, favorable business profile and appropriate
ERM.
RSUI continues to support its rating with the strongest levels
of risk-adjusted capitalization and an excellent track record of
strong operating performance supported by underwriting results that
have consistently outperformed the industry. While RSUI operates in
a highly competitive environment with many large, well-established
players, it has successfully carved out a favorable business
profile with a focus on a wholesale distribution network.
The ratings of CapSpecialty reflect its balance sheet strength,
which A.M. Best categorizes as very strong, as well as its marginal
operating performance, neutral business profile and appropriate
ERM.
CapSpecialty’s operating performance is considered marginal,
which is largely reflective of its overall return metrics and an
expense ratio that underperforms the industry. However, as
CapSpecialty continues to reposition its book of business, this has
translated into more prudent risk selection and a loss ratio that
compares favorably with peers.
Alleghany’s ratings are indicative of the organization’s
historic overall earnings capabilities, low levels of financial
leverage and favorable financial flexibility, as well as its
consistent track record of supporting its insurance operations.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have
been affirmed with stable outlooks for Transatlantic Reinsurance
Company and its following subsidiaries:
- TransRe Zurich Ltd.
- TransRe London Limited
- Fair American Insurance and Reinsurance
Company
- Fair American Select Insurance
Company
- Calpe Insurance Company Limited
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have
been affirmed with stable outlooks for the following members of
RSUI Group:
- RSUI Indemnity Company
- Landmark American Insurance
Company
- Covington Specialty Insurance
Company
The FSR of A (Excellent) and ICRs of “a” has been affirmed with
stable outlooks for the following members of CapSpecialty Insurance
Group:
- Capitol Indemnity Corporation
- Platte River Insurance Company
- Capitol Specialty Insurance
Corporation
The following Long-Term IRs have been affirmed with stable
outlooks:
Alleghany Corporation—
-- “a-” on $300 million 5.625% senior unsecured notes, due
2020
-- “a-” on $400 million floating rate senior unsecured notes,
due 2022
-- “a-” on $300 million 4.9% senior unsecured notes, due
2044
Transatlantic Holdings Inc.—
-- “a-” on $350 million 8% senior unsecured notes, due 2039
This press release relates to Credit Ratings 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 see A.M.
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 A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20181102005561/en/
A.M. BestScott Mangan, +1 908 439 2200, ext.
5593Associate
Directorscott.mangan@ambest.comorCatherine Thomas,
+44 20 7626 6264Senior
Directorcatherine.thomas@ambest.comorChristopher
Sharkey, +1 908 439 2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1 908 439 2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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