A.M. Best has upgraded the financial strength rating to “A (Excellent)” from “A- (Excellent)” and issuer credit rating to “a” from “a-” of Transportation Property and Casualty Company (TPCC).
The outlook for both ratings has been revised to stable from positive.
The rating upgrades reflect TPCC’s excellent risk-adjusted capitalisation and operating performance, its strong enterprise risk management programme and experienced management team.
“Also inuring to the benefit of the ratings is the captive’s favourable profile as part of the South Coast British Columbia Transportation Authority (TransLink),” said the rating firm in a release.
Partially offsetting these positive rating factors are TPCC’s relatively small scale of operations and high exposures.
Factors that could lead to a negative outlook or a downgrading of TPCC’s ratings are a material loss of capital from either claims or investments, a reduced level of capital that does not support the ratings, or an increase in net retention.
TPCC is a pure captive insurance company that provides automobile physical damage, general liability and property insurance coverage solely to TransLink.
