A.M. Best Affirms Ratings of Transmonde Services Insurance Company, Limited

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Transmonde Services Insurance Company, Limited (Transmonde) (Bermuda). The outlook for each rating is stable.

The ratings and outlooks reflect Transmonde’s excellent risk-adjusted capitalization, minimal underwriting leverage and consistently profitable operating results driven by excellent underwriting performance.

Partially offsetting these positive rating factors are its relatively high retentions and concentration in liability lines with significant loss severity potential, and its limited market profile as a single parent captive. Transmonde provides professional, general and pollution liability coverages to members of the International Association of Superintendents, which are subsidiaries of SGS SA (SGS), a publicly traded Swiss company [SWX: SGSN].

Transmonde has maintained very conservative underwriting leverage ratios as surplus has remained strong to support its business volumes. Historically, surplus growth is the result of retained earnings from highly profitable operating results driven by excellent underwriting performance. The company has posted low loss and loss adjustment expense ratios, reflecting SGS’s effective risk management. Its relatively high per occurrence retentions are mitigated by significant deductibles and conservative reserving practices.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to rating(s) 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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.

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A.M. Best
Janet Hernandez, +1 908-439-2200, ext. 5767
Senior Financial Analyst
[email protected]
or
Steve Chirico, +1 908-439-2200, ext. 5087
Assistant Vice President
[email protected]
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +1 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best

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