A.M. Best Affirms Ratings of TT Club.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-" of Through Transport Mutual Insurance Association Limited (TTB TTB Alcohol and Tobacco Tax and Trade Bureau (US Department of the Treasury) TTB Thru the Bible TTB Telegraphic Transfer Buying (currency exchange rate) TTB Through-The-Book TTB That's Too Bad ) (Bermuda) and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , TT Club Mutual Insurance Limited (TTI TTI Texas Transportation Institute TTI Thoracic Trauma Index TTI Transmission Time Interval TTI Travel Time Index TTI Travel Technology Initiative TTI Technology Transfer Initiative TTI Traffic and Traveller Information TTI Technology Transfer Institute ) (United Kingdom). The two companies collectively trade as TT Club. The ratings of TTI continue to reflect A.M. Best's view that the company is an integral part of TT Club's worldwide strategy. The outlook for both ratings remains stable. A.M. Best believes TT Club will maintain strong consolidated risk-adjusted capitalisation in 2009, despite an anticipated reduction in retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . Capitalisation is supported by a USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 30 million subordinated loan (issued in October 2006), and the club benefits from a comprehensive catastrophe reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. programme with extensive vertical and horizontal protection. A.M. Best expects TT Club to continue to report a combined ratio above 100% in 2009 in line with 2006-2008. The club's investment earnings are unlikely to offset underwriting losses, owing to ongoing disruption in the financial markets, and A.M. Best anticipates a pretax loss pretax loss A loss reported before tax benefits are considered. for the year. TT Club has taken measures to improve underwriting profitability, including the restructuring of its management in 2008 in order to reduce its expense base. However, A.M. Best believes that a significant improvement in the club's operating performance is unlikely to be achieved in the absence of sustained premium rate increases. In A.M. Best's opinion, TT Club has a good specialist business profile in the international marine transport and logistics insurance market, underpinned by a superior service provision. This is likely to support high policyholder retention in 2009 (2008: over 90%). For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. 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 www.ambest.com. |
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