TT Club keeps its ‘very good’ AM Best rating


  • Date: 24/05/2004

24 May 2004

RATINGS agency AM Best has forecast that Through Transport Club will continue producing good profits into next year. Following the club’s latest financial statement the agency has affirmed its B++ (very good) financial strength rating.

The rating applies to TT Bermuda and its core subsidiary TT EurAsia, which collectively trade as TT Club. Outlook for both companies was said to remain stable. The verdict will be seen as backing the club’s ambition to regain its A rating around the end of the year. Club managers say it already qualifies for the A category under AM Best criteria but rating changes are usually reserved for an annual review.

The marine liability insurer is seen as having made good progress since mending its reserves and overhauling its portfolio two years ago. AM Best expects “solid operating profits” — return on net earned premium of 15%-20% — in 2004 and 2005.” Underwriting is expected to be the main driver of financial performance, with a combined ratio between 90% and 95% likely in the two years. Ratios below 100% reflect surplus on underwriting. The agency said an offsetting rating factor was reliance on reinsurance cover, with 45% of gross premium income expected to be ceded in 2004. These concerns were partially mitigated by multi-year policies with high quality reinsurers and the analyst expected reinsurance ceded to fall to between 35% and 40% by next year.

A full archive of all TT Club news releases and photographs is available from the ISIS Communications Press Room at www.isiscomms.com

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.