AM Best affirms AT&T captive ratings

Rating agency AM Best has affirmed the financial strength rating of A-(Excellent) and the issuer credit rating of ‘a-‘ of AT&T’s captive Gateway Rivers Insurance Company.

The rating agency said the ratings and stable outlook reflect Gateway's strong capitalisation and conservative operating strategy.

“The ratings also consider the company's critical role and favourable profile as part of the AT&T organisation, as well as its excellent operating performance during the past five years, providing insurance coverage to subsidiaries of AT&T for certain property/casualty risks,” said AM Best.

However, Gateway's relatively large limits to its property lines of business partially offset the positive rating factors.

“AM Best expects Gateway's future operating performance to be stable but strong, and the stable earnings profile should further support the efforts to control its growth and business writings, which are consistent with its capital and surplus position,” said the rating agency.