AM Best has assigned a Financial Strength Rating of B (Fair) to American Transportation Group Insurance Risk Retention Group (ATGI). The outlook assigned to the rating is stable.
The rating agency said the ratings reflect ATGI’s balance sheet strength, which AM Best categorizes as weak, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
It said ATGI’s weak balance sheet assessment reflects the organization’s adequate risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as of the second quarter of 2019 and its limited financial flexibility and scale of operations.
It added that ATGI’s operating performance is assessed as adequate due to reasonable performance projections according to the organization’s five-year business plan.
“ATGI’s business profile is assessed as limited, due to product line concentration in commercial automobile liability coverages.
“Additionally, operations are spread geographically across a wide region of the US. ATGI’s ERM is assessed as appropriate due to the organization’s evolving risk management framework, stringent underwriting criteria and prospective policyholder assessments that are utilized to identify and retain quality risks,” the rating agency said.
AM Best, Ratings, ATGI, Captives, Insurance, Cayman Islands