Press Release: TT CLUB RATING MAINTAINED AT A- (EXCELLENT)


 

15 June 2009

A.M.Best expected TT Club to maintain a strong capital position in 2009, despite an anticipated reduction in retained earnings. “Capitalisation is supported by a USD 30 million subordinated loan (issued in October 2006), and the Club benefits from a comprehensive catastrophe reinsurance programme with extensive vertical and horizontal protection” said a statement by A.M.Best. Charles Fenton, CEO of TT Club, expressed satisfaction with the confirmation of an A- rating. “This comes against a background of a difficult year for the insurance industry, when natural disasters such as the flooding in Myanmar, the major earthquake in Sichuan, China and the hurricanes in the US Gulf made 2008 the second costliest year in insurance history, after 2005.” “Ninety per cent of the Club’s assets have been invested in highly rated government bonds and cash deposits, and as a result the Club was not exposed to the effects of the severe downturn in the equity markets in the second half of the year and achieved an underlying investment return of 3.5%. No doubt this sensible investment policy has been instrumental in having our credit rating reaffirmed,” he said. In addition to a re-alignment of the risk profile and new product development, the strategy, already implemented to a significant degree by TT includes; improvement in the high service standards offered to the Club’s traditional core market sectors, particularly port and terminal operators; maintenance of a high solvency level; reduced dependence on reinsurance, via higher risk retention and an increased sales focus on the transport and logistics sector. In the agency’s opinion, TT Club has a good specialist business profile in the international freight transport and cargo handling insurance market, underpinned by a superior service provision. This is likely to support high policyholder retention in 2009. In 2008 the Club achieved a retention rate on renewal of over 90%. Fenton concluded, “I am confident that the Club is now well-placed to take full commercial advantage of improving economic conditions through 2010.” ENDS Note to Editors: TT Club The TT Club is the international transport and logistics industry's leading provider of insurance and related risk management services. Established in 1968, the Club's membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice. www.ttclub.com Enquiries to: Ian Lush, Marketing Director, TT Club Tel: +44 (0) 20 7204 2642 E-mail: ian.lush@thomasmiller.com www.ttclub.com Media contact: Peter Owen, ISIS Communications Tel: +44 (0) 1737 248300 E-mail: info@isiscomms.com www.isiscomms.com Distributed by ISIS Communications Tel: +44 1737 248300 from outside UK 0845 130 1160 from within UK Email: info@isiscomms.com

 

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Through Transport Mutual Insurance Association Limited and TT Club Mutual Insurance Limited, trading as the TT Club. TT Club Mutual Insurance Limited, registered in the UK (Company number: 02657093) is authorised by the Prudential Regulation Authority and regulated in the UK by the Financial Conduct Authority and Prudential Regulation Authority. In Hong Kong, TT Club Mutual Insurance Limited is authorised and regulated by the Hong Kong Insurance Authority, in Singapore by the Monetary Authority of Singapore and in Australia by the Australian Prudential Regulation Authority. In the United States, TT Club Mutual Insurance Limited is approved as a surplus lines insurer in all states and is accessible through properly licensed surplus lines brokers. The registered offices are: 90 Fenchurch Street, London, EC3M 4ST.

Through Transport Mutual Insurance Association Limited, registered in Bermuda (Company number: 1750) is authorised and regulated in Bermuda by the Bermuda Monetary Authority and is authorised in the UK by the Prudential Regulation Authority and regulated in the UK by the Financial Conduct Authority and Prudential Regulation Authority.

The UK VAT Identification number for Through Transport Mutual Insurance Association Limited is: GB 564 5244 35 and for TT Club Mutual Insurance Limited is: GB 564 3375 30. The Italian VAT Identification number for TT Club Mutual Ltd is: 03627210101.