AM Best Affirms Credit Ratings of The Travelers Companies, Inc. and Its Main Subsidiaries
05 Novembre 2019 - 11:17PM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A++ (Superior) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “aa+” of the main subsidiaries of The Travelers
Companies, Inc. (TRV) (headquartered in New York, NY) [NYSE: TRV],
collectively known as Travelers Group (Travelers). In addition, AM
Best has affirmed the FSR of A++ (Superior) and the Long-Term ICRs
of “aa+” of Travelers Casualty and Surety Company of America (TCSA)
(Hartford, CT) and its affiliates, Travelers Casualty and Surety
Company of Europe Limited (TCSCE) (United Kingdom) and Travelers
Insurance Company of Canada (TICC) (Ontario).
Concurrently, AM Best has affirmed the Long-Term ICRs and the
senior Long-Term Issue Credit Ratings (Long-Term IR) of “a+” of TRV
and its two wholly owned downstream holding companies, Travelers
Property Casualty Corp. and Travelers Insurance Group Holdings Inc.
(both headquartered in Hartford, CT). All outstanding securities
issued by the two downstream holding companies are guaranteed by
TRV. All other Long-Term IRs and Short-Term Issue Credit Ratings
(Short-Term IR) guaranteed by TRV, and TRV’s indicative Long-Term
IRs also have been affirmed. The outlook of these Credit Ratings
(ratings) is stable.
AM Best also has affirmed the FSR of A (Excellent) and the
Long-Term ICR of “a” of The Dominion of Canada General Insurance
Company (Dominion) (Toronto, Ontario, Canada). The outlook of these
ratings is stable.
Additionally, AM Best has affirmed the FSR of A- (Excellent) and
the Long-Term ICR of “a-” of First Floridian Auto and Home
Insurance Company (First Floridian) (Tampa, FL). The outlook of
these ratings is stable. (Please see link below for a detailed
listing of the companies and ratings.)
The ratings of Travelers reflect the group’s balance sheet
strength, which AM Best categorizes as strongest, as well as its
very strong operating performance, favorable business profile and
appropriate enterprise risk management (ERM).
Historically, risk-adjusted capitalization has consistently been
strongly supportive of the group’s ratings. It exceeds the
threshold for the strongest categorization by a wide margin, as
measured by Best’s Capital Adequacy Ratio (BCAR). The assessment of
the group’s balance sheet strength also reflects its stable loss
reserve position, the use of a comprehensive reinsurance program
and high quality reinsurance partners. While Travelers reported
overall adverse development of its loss reserves through the first
nine months of 2019 on a GAAP basis, the amount is relatively
modest relative to the group’s reserve base. AM Best expects that
the group’s reserves will reflect a continuation of its prudent
approach to the impact of societal trends on claims settlements but
does not anticipate any material impact on risk-adjusted
capitalization in the near term.
The group’s very strong operating performance reflects
consistently profitable results supported by typically strong
underwriting results and steady investment income. Underwriting
performance in 2019 will be impacted negatively by the adverse loss
reserve development and catastrophe losses. The group has reported
positive underwriting income in nine of the past 10 years, with
2011 being the exception due to an increased amount of
catastrophes.
Based on 2018 direct premiums written, Travelers has the leading
market share in commercial lines and is the ninth-largest personal
lines writer in the United States. Overall, Travelers ranks as the
sixth-largest property/casualty (P/C) writer in the United States.
Travelers maintains a broad spread of risk in that it offers a wide
array of P/C coverages spread geographically in all 50 states, the
District of Columbia, Canada, England and Ireland.
The ratings of TCSA and TCSCE reflect the group’s balance sheet
strength, which AM Best categorizes as strongest, as well as its
very strong operating performance, favorable business profile and
appropriate ERM.
The ratings of TICC reflect its balance sheet strength, which AM
Best categorizes as strongest, as well as its strong operating
performance, neutral business profile and appropriate ERM. The
ratings also reflect the implicit support it receives from its
direct parent, TCSA, as well as from its ultimate parent, TRV.
The ratings of Dominion reflect its balance sheet strength,
which AM Best categorizes as strongest, as well as its marginal
operating performance, neutral business profile and appropriate
ERM. The ratings also reflect the implicit support it receives from
its ultimate parent, TRV.
The ratings of First Floridian reflect its balance sheet
strength, which AM Best categorizes as very strong, as well as its
adequate operating performance, limited business profile and
appropriate ERM.
A complete listing of The Travelers Companies, Inc.’s FSRs,
Long-Term ICRs and Long- and Short-Term IRs also is available.
This press release relates to Credit Ratings that have been
published on AM 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 AM 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 AM Best press releases, please view Guide
for Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider
with an exclusive focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20191105006244/en/
Elizabeth Blamble Senior Financial Analyst +1
908 439 2200, ext. 5603 elizabeth.blamble@ambest.com
Jennifer Marshall Director +1 908 439 2200,
ext. 5327 jennifer.marshall@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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