AM Best Affirms Credit Ratings of Trisura Guarantee Insurance Company and Trisura Specialty Insurance Company
AM Best has affirmed the Financial Strength Rating A- (Excellent) and the Long-Term Credit Rating of “a-” of Trisura Guarantee Insurance Company (Trisura Guarantee) (Toronto, Ontario, Canada), and its sister company, Trisura Specialty Insurance Company (Trisura Specialty) (Oklahoma City, OK). The outlook of these Credit Ratings (ratings) remains stable.
The ratings of Trisura Guarantee reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Trisura Guarantee’s balance sheet strength is supported by consistent growth in surplus and conservative reserving practices. Operating performance remains favorable with solid underwriting performance, and is supported further by consistent solid net investment income over the prior five-year period.
Positive rating action could occur if the company were to expand its geographic and market presence successfully while maintaining a trend of favorable operating performance in excess of peer averages. Negative rating pressure may materialize if the company were to incur significant losses in its capitalization, experience a substantial reduction in the profitability of its core book of business or encounter substantial adverse reserve development relative to peers and industry averages.
The ratings of Trisura Specialty reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM.
Trisura Specialty has continued to expand its operations through 2019, meeting management’s projections to date. Underwriting performance is in line with expectations at this time, and AM Best expects greater underwriting diversification as the company continues to scale operations.
Positive rating action could occur if the company is able to demonstrate the implementation of its strategy through a trend of consistent and favorable operating results in excess of peer performance. Negative rating pressure could occur if the company is unable to leverage existing relationships to obtain favorable business or if the company demonstrates an inability to properly manage the degree of risk on its books, resulting in adverse performance.
Both companies’ ratings also consider the benefits received from the publicly traded ultimate parent, Trisura Group Ltd. [TSX: TSU]. The parent company remains well-capitalized and recently completed a $58 million equity raise; however, there is neither any rating lift nor drag afforded to the operating entities.
This press release references Credit Ratings published on AM Best’s website. For the latest rating, access www.ambest.com.
To view the original press release, visit AM Best’s website.
About AM Best:
Founded in 1899, AM Best is a provider of ratings, financial data and news, exclusively focusing on the insurance industry. For more information, visit www.ambest.com.
About Trisura Guarantee:
Trisura Guarantee Insurance Company is a Canadian specialty insurance and surety company with offices across Canada, providing customized solutions and expertise through a select broker network. Trisura Guarantee is uniquely positioned to satisfy Canadian risks in Contract, Commercial and Developer Surety, Directors’ and Officers’ Liability, Fidelity, Professional Liability including Media and Cyber Liability and Warranty products.
Trisura Guarantee Insurance Company is a subsidiary of Trisura Group Ltd., a leading international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated subsidiaries: Trisura Guarantee Insurance Company, Trisura International Insurance Ltd. and Trisura Specialty Insurance Company. Trisura is listed on the Toronto Stock Exchange under the symbol “TSU.”