6 June 2016Actuarial & underwriting

AM Best affirms 'A' (Excellent) FSA of Transmonde

AM Best has affirmed the financial strength rating (FSA) of 'A' (Excellent) of Transmonde Services Insurance, a Bermuda single parent captive.

The outlook for the rating is stable.

The rating reflects Transmonde’s excellent risk-adjusted capitalisation, minimal underwriting leverage and consistently profitable operating results driven by excellent underwriting performance, according to AM Best.

Partially offsetting these positive rating factors are its relatively high retentions and concentration in liability lines with significant loss severity potential, and its limited market profile as a single parent captive, said the rating firm.

Transmonde provides professional, general and pollution liability coverages to members of the International Association of Superintendents, which are subsidiaries of SGS SA (SGS), a publicly traded Swiss company.

Transmonde has maintained very conservative underwriting leverage ratios as surplus has remained strong to support its business volumes. Historically, surplus growth is the result of retained earnings from highly profitable operating results driven by excellent underwriting performance.'