TT Club given Best rating upgrade
12 December 2003
AM Best, the financial ratings agency, has upgraded the TT Club's rating to B++ (Very Good) after its recent review of the insurer's performance. The assigned outlook is
. The mutual organisation, which specialises in the insurance of transport and logistics risks, filed a dramatic improvement in its 2002 financial year results, posting a US$50.9m turnaround to achieve a US$10.7m surplus after tax.
According to AM Best the improved rating, up from B+ (Very Good), "reflects the significant improvement in the company's prospective risk-adjusted capital position resulting from a revised business plan and reduction in net retained risk through changes to the reinsurance program. The rating continues to reflect the positive trend in TT's consolidated financial performance."
Mr Paul Neagle, Chief Executive of TT Club commented: "This latest upward revision of our financial rating is an important milestone and indicator of success in our three-year strategy to return the Club to its previous level of financial strength. I am delighted this has been recognised by this upgrade and look forward to further improvements as our strategy delivers consistent results for our Members in future years."
Building on the turnaround achieved in the Club's last financial year, 2003 has seen additional moves by TT Club to maintain positive underwriting results, restore reserves and further strengthen its financial position. In particular AM Best noted that the Club has this month (December 2003) replaced its 10.5% finite quota share arrangement with a traditional 20% quota share with Swiss Reinsurance Company.
"This cuts the level of net retained risk," said the agency. TT also observed that the improved financial strength is being achieved despite a reduction in forecast net premium income for the 2004 fiscal year of some US$50m due to lower growth targets and increased reinsurance cessions.
"Restoring the Club's financial strength required us to look objectively at some lines of business," said Mr Neagle. "But we are now on track to grow the business again with flexible and member-driven insurance and risk management products backed by exemplary service."
"In addition, sound underwriting principles allied to a professional understanding and assessment of risks will underpin our drive to reach a position consistent with our former A minus rating," he added.
ENDSNote to Editors:
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 industry-leading benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.
If you have any questions concerning the Club's revised rating please contact your insurance broker or:
For further information please contact:
Tel + 44 (0)20 7204 2642
Michael Haig and Peter Owen, ISIS Communications
Tel +44 (0)1737 248300