A.M. Best Co. has affirmed the financial strength rating of A
(Excellent) and issuer credit rating (ICR) of “a+” of Travelers
Insurance Company Limited (TIC) (United Kingdom). The outlook for
both ratings remains stable.
The ratings continue to reflect TIC’s excellent risk-adjusted
capitalisation and operating performance as well as its strong UK
business profile. The ratings also factor explicit parental support in
the form of a guarantee in respect of all TIC’s liabilities provided by St.
Paul Fire and Marine Insurance Company, a subsidiary of TIC’s
ultimate parent, The Travelers Companies, Inc. (St. Paul, MN)
[NYSE: TRV].
TIC is expected to maintain excellent risk-adjusted capitalisation in
2008 supported by strong underwriting performance and solid anticipated
investment returns driven by the company’s conservative investment
strategy (TIC has no equity investments). A.M. Best anticipates an
improvement in pre-tax profit in 2008 from GBP 78.2 million in 2007. The
increased level of profit expected in 2008 is likely to be supported by
a higher prior year reserve release (up from 36 million in 2007) and
less severe catastrophe experience compared with 2007, which was
affected by UK flood losses.
In A.M. Best’s opinion, TIC has a strong business profile in the UK as a
leading underwriter in the specialist commercial lines market. As a
result of continuing strong competition in the UK in 2008, A.M. Best
anticipates modest growth of less than 5% in gross premiums written
(2007 gross premiums written: GBP 278 million).
For Best’s Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
A.M. Best
Analysts
Stephen Mullan, +(44) 20
7626 6264
stephen.mullan@ambest.com
or
Colin
Towell, +(44) 20 7626 6264
colin.towell@ambest.com
or
Public
Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644
james.peavy@ambest.com
or
Rachelle
Morrow, +(1) 908 439 2200, ext. 5378
rachelle.morrow@ambest.com
