AM Best Affirms Credit Ratings Of Transmonde

October 19, 2019 | 0 Comments

AM Best has affirmed the Financial Strength Rating of A [Excellent] and the Long-Term Issuer Credit Rating of “a” of Transmonde Services Insurance Company Limited [Hamilton, Bermuda]. The outlook of these Credit Ratings remains stable.

A statement from the ratings agency said, “The ratings reflect Transmonde’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

“Transmonde’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio [BCAR], was categorized as strongest as of year-end 2018. The balance sheet strength also benefits from low underwriting leverage and good financial flexibility, which stems from the company’s affiliation to SGS SA [SGS], a publicly traded Swiss company [SWX: SGSN]. Partially offsetting rating factors include the investment concentration in a single parental loan and the high dividends payments made to the parent over recent years.

“Transmonde has a track record of strong operating performance, underpinned by excellent underwriting earnings and a stable level of interest income. Thanks to its lean operating model and robust loss controls in place, the company has maintained a very low expense ratio and loss ratio throughout the years. As a single-parent captive, Transmonde writes a portfolio of professional, general and pollution liability risks for the insurance needs of SGS.

“SGS is a leading multinational group specialized in inspections, verification, testing and certification across several industries worldwide. Transmonde is a key component of the risk management framework of the wider organization, and its risk capabilities are aligned appropriately with its risk profile.”

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