TIC gets ‘A’ rating from AM Best
AM Best has assigned a financial strength rating of A and a long-term issuer credit rating of “a” to Torreyana Insurance Company (TIC). The outlook assigned to these ratings is stable.
The ratings reflect TIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
AM Best said that the ratings also reflect Torreyana’s function as the only captive insurer for Vertex Pharmaceuticals, a global pharmaceutical company. As Torreyana insures or reinsures Vertex’s global liability and property exposures, it plays a strategic and critical role in Vertex’s overall ERM in protecting the enterprise’s assets.
The very strong balance sheet strength assessment of TIC is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio, as well as a conservative investment portfolio and adequate reserves. Its recent growth in surplus is supported largely with capital contribution from its parent, Vertex. Additionally, TIC has a highly rated diverse and reinsurance panel that is well-equipped to protect the company’s balance sheet.
TIC’s strong operating performance reflects its consistently favorable combined ratios, supported by very low loss ratios based on Vertex’s historical legacy loss experience placed into Torreyana upon establishment. Combined ratios are significantly lower than those of peers. Additionally, TIC maintains minimal expense ratios as a single-parent captive, and it continues to review expansion into additional coverages for the parent.
Torreyana is a wholly owned captive insurance subsidiary of Vertex, created to insure or reinsure specific risks of its parent organization. AM Best assesses the business profile as neutral as TIC is diverse geographically and by product, as it offers several coverages for its global parent. ERM is appropriate for the company as its practices have emanated from its parent, Vertex, leading to its establishment. Vertex is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company has approved medicines that treat the underlying causes of multiple chronic, life-shortening genetic diseases - cystic fibrosis, sickle cell disease and transfusion-dependent beta thalassemia - and continues to advance clinical and research programs in these diseases.
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