June 14 - US rating agency, A. M. Best has re-affirmed TT Club's financial strength rating as A- (Excellent).
The specialist insurer of the international freight and logistics sector has also had its issuer credit rating maintained at 'a -' by the agency.
A. M. Best pronounced the outlook for both ratings as 'stable'. This is the seventh successive year that TT has maintained its ratings at these levels.
In a statement issued by the agency confirming the ratings, the mutual's financial stability was outlined in detail. "TT Club is expected to maintain excellent consolidated risk-adjusted capitalisation in 2012," said A. M. Best and further commented, "The Club continues to set reserves with a significant margin established above actuaries' best estimate".
Charles Fenton, chief executive of TT Club welcomed the favourable rating announcement and commented on the satisfactory operating performance "Despite the difficult market conditions during the 2011 reporting period, the Club's Combined Ratio remained under 100 percent (2011 actual 98.6 percent) indicating that claims payments and administrative expenses together were more than offset by premium income which is a healthy position for the Club to be in."
This was re-iterated by comments within A. M. Best's statement, "The Club is expected to produce a combined ratio of around 100 percent in 2012, in line with its recent performance. Results are likely to continue to benefit from reserve releases given the club's conservative reserving strategy. Investment income is expected to be positive but modest, reflecting a conservative investment portfolio".