AT&T captive gets major points for management

Gateway Rivers Insurance Company, the Vermont-domiciled captive of AT&T, has been given solid ratings by AM Best on the back of its strong capitalisation and corporate strategy.

A conservative operating strategy and “excellent” operating performance over the past five years earned the captive a financial strength rating of A- and an issuer credit rating of “a-“. While relatively large limits to property lines of business did partially offset the ratings, AM Best wrote, “[we] recognise the substantial resources of the AT&T organisation”.

AM Best expects the captive’s future operating performance to stable and strong; Gateway’s ratings are not expected to be upgraded or its outlook revised for the next 12 to 24 months. A downgrade could be triggered by significant changes and turnover in management.