A.M. Best has upgraded the financial strength rating to "A (Excellent)" from "A- (Excellent)" and issuer credit rating to “a” from “a-” of Transmonde Services Insurance Company in Bermuda.
The rating upgrades are based on Transmonde’s historical operating performance, excellent risk-adjusted capitalisation and minimal underwriting leverage; all factors which have allowed Transmonde to enhance its surplus considerably in recent years, said A.M. Best.
Partially offsetting these positive rating factors are the company’s relatively high retentions and concentration in liability lines with significant loss severity potential.
An additional offsetting rating factor is its limited market profile as a single parent captive. Transmonde provides professional, general and pollution liability coverages to members of the International Association of Superintendents, which is a subsidiary of SGS, a publicly traded Swiss company.
