AM Best Affirms Credit Ratings of Transatlantic Reinsurance Company and Alleghany Corporation
31 October 2019 - 7:15AM
Business Wire
AM 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 (New York, NY)
and its subsidiaries (collectively referred to as TransRe). In
addition, AM 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.
Alleghany and Transatlantic Holdings, Inc. are headquartered in New
York, NY.
Concurrently, AM 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).
AM 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 of these Credit Ratings (ratings) is stable. (Please
see below for a detailed listing of the companies and ratings.)
The ratings of TransRe reflect its balance sheet strength, which
AM Best categorizes as strongest, as well as its adequate operating
performance, very favorable business profile and appropriate
enterprise risk management (ERM).
TransRe continues to maintain a robust business profile with a
highly diversified book of business in terms of geography and
product offerings. TransRe also maintains the strongest level of
risk-adjusted capitalization even under stressed scenarios and the
quality of capital is considered a positive for the ratings.
TransRe consistently has delivered solid results over the
reinsurance cycle, and although it remains exposed to catastrophic
events worldwide, it is expected to produce favorable earnings
driven by underwriting income and complemented by investment
income.
The ratings of RSUI reflect the group’s balance sheet strength,
which AM Best categorizes as strongest, as well as its strong
operating performance, favorable business profile and appropriate
ERM.
RSUI continues to maintain an exceptional track record of strong
operating performance driven by solid underwriting results that
have consistently outperformed the industry. The group has been
able to successfully remain relevant in a highly competitive
environment and AM Best expects that RSUI will continue to maintain
a strong position in the market and will continue to deliver strong
results and maintain the strongest level of risk-adjusted
capitalization.
The ratings of CapSpecialty reflect its balance sheet strength,
which AM 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,
CapSpecialty continues to reposition its book of business to a more
prudent risk selection and a loss ratio that is well below its
peers. Going forward, AM Best expects CapSpecialty to continue
working toward improving its expense ratio and deliver operating
results that are more in line with the industry.
Alleghany’s ratings are based on the organization’s historical
earnings results, its 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 Europe S.A.
- 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 Long-Term ICRs of “a” have 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 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 credit rating agency and information
provider with an exclusive focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2019 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/20191030006073/en/
Mariza Costa Senior Financial Analyst +1 908 439 2200, ext.
5154 mariza.costa@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Ben Diaz-Clegg Financial Analyst +44 20 7397
0293 ben.diaz-clegg@ambest.com
Jim Peavy Director, Public Relations +1 908 439 2200,
ext. 5644 james.peavy@ambest.com
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