A.M. Best Upgrades Ratings of TT Club.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Very Good) of Through Transport Mutual Insurance Association Limited (TT Bermuda Bermuda (bûrmy  `də), British dependency (2005 est. pop. 65,400), 21 sq mi (53 sq km), comprising some 150 coral rocks, islets, and islands (of which some 20 are inhabited), in the ) (Bermuda) and its wholly owned subsidiary Wholly Owned SubsidiaryA 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. , Through Transport Mutual Insurance Association (EurAsia) Limited (TT EurAsia) (United Kingdom). The two companies collectively trade as TT Club. At the same time, A.M. Best has upgraded the issuer credit ratings to "a-" from "bbb+" for both companies. The outlook for all ratings is stable. The upgrade of the ratings reflects TT Club's consistent strong underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance in recent years, leading to an improvement in risk-adjusted capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper that A.M. Best believes is sustainable. Additionally, the quality of capital is likely to improve as TT Club's dependence upon 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. falls. The company's overall net premium retention is likely to increase to 74% in 2006, up from 67% in 2005. The ratings of TT EurAsia continue to reflect A.M. Best's view that the company is an integral part of TT Club's worldwide strategy. A.M. Best anticipates that TT Club's excellent recent performance will continue in 2006 and 2007, although underwriting profitability is likely to decline due to rate decreases that the company is expected to offer to certain TT Club members. The rate reductions, combined with higher catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). reinsurance costs, are likely to drive an increase in TT Club's combined ratio to approximately 95% in 2006, up from 74% in 2005. TT Club's sustained excellent performance is likely to be supported by its efforts to improve its business portfolio and underwriting controls. In 2005, TT Club's gross loss from the U.S. hurricanes was 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. 60 million, but this reduced to a modest USD 2.5 million net of reinsurance. The company continues to benefit from comprehensive catastrophe reinsurance protection. A.M. Best believes that TT Club also benefits from a strong profile focused on the provision of insurance and risk management products for the international transport and logistics industry. Gross premiums in 2006 are likely to be approximately USD 212 million, a moderate increase of 4% over the previous year. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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