A.M. Best Affirms Credit Ratings of Transatlantic Reinsurance Company and Alleghany Corporation
September 29 2017 - 1:38PM
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.)
TransRe’s ratings reflect its strong risk-adjusted
capitalization, robust enterprise risk management and consistent
operating performance. The ratings also reflect TransRe’s
well-regarded business profile and its highly diversified book of
business by product and geography. It continues to be A.M. Best’s
expectation that while TransRe’s return measures are unlikely to be
at the high end of the companies’ peer group, TransRe will continue
to produce favorable results that are supportive of its ratings and
with lower volatility relative to its peers over the course of the
full cycle. Additionally, given the recent catastrophic events,
A.M. Best’s expectation is that losses from Hurricanes Harvey, Irma
and Maria will be within TransRe’s stated risk tolerances and also
within A.M. Best expectations, as A.M. Best looks across the losses
relative to the broader peer group. A.M. Best will continue to
monitor the developments associated with these events and their
impact on TransRe. Should there be a material deviation from
expectations, A.M. Best will update the market with regards to its
rating opinion on TransRe.
The ratings of RSUI continue to reflect the group’s strong
risk-adjusted capitalization and excellent track record of superior
underwriting results that have outperformed the industry. Although
RSUI has significant catastrophe exposures and elevated equity
leverage in its investment portfolio, both are closely monitored
and managed as part of RSUI’s risk management planning.
CapSpecialty’s ratings recognize its strong risk-adjusted
capitalization and its ongoing process of re-orienting its book of
business to produce more stable results. CapSpecialty benefits from
the implicit and explicit support of Alleghany, its ultimate
parent.
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 the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20170929005658/en/
A.M. BestScott Mangan, +1-908-439-2200, ext.
5593Senior Financial
Analystscott.mangan@ambest.comorAlvise Argenton, +44
20 7397 0293Financial
Analystalvise.argenton@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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