Press Release: A.M. Best Once More Confirms TT Club's Rating as A- (Excellent)
TT Club, the leading mutual insurer in the international freight and logistics arena has had its financial strength rating of A- (Excellent) re-affirmed once again by the US rating agency, A. M. Best. TT's issuer credit rating was also maintained at 'a -' by the agency, which at the same time determined that the outlook for both ratings remains 'stable'.
In its statement issued today announcing the Club's ratings A. M. Best expressed its view of the insurer's balance sheet strength, "TT Club is expected to maintain excellent consolidated, risk-adjusted capitalisation in 2011 following the good operating surplus achieved in 2010," it said and also commented positively, "The Club continues to set reserves with a significant margin established above internal actuary's best estimate".
Charles Fenton, TT Club's Chief Executive Officer, in welcoming the rating announcement, said, "We are, of course pleased with the confidence the rating agency has expressed in the Club especially during the sustained soft market conditions the industry is experiencing at present. The Club is strongly placed both in terms of its capital and operating positions to take advantage of an improvement in the world economy and in the premium rating environment when they occur".
The agency expects The Club's underwriting results, which were weakened in 2010 by losses arising from the earthquake in Chile, as well as two major maritime incidents, to improve as global trading conditions recuperate. This belief is encouraged, say A. M. Best by TT Club's strong specialist business profile covering both property and liability in the international maritime transport and logistics markets.
In further reaction to the A - (Excellent) rating and the accompanying observations made by A. M. Best, Fenton commented, "The statement draws attention to the Club's strong positioning in its market place and its commitment to delivering to its members a superior service, quality loss prevention and risk management advice. It is as a result of these factors that the Club maintains member retention rates of over 95% year after year. "