A.M. Best has affirmed the financial strength rating of “A-“ (Excellent) and the issuer credit rating of “a-” of Gateway Rivers Insurance Company of Dallas, Texas. The outlook for both ratings is stable.
The agency has stated that the ratings and outlook reflect Gateway’s strong capitalisation and conservative operating strategy.
The ratings also consider the company’s critical role and favourable profile as part of the AT&T organisation, as well as its “excellent” operating performance during the past five years, providing insurance coverage to subsidiaries of AT&T for certain property and casualty risks.
Partially offsetting these positive rating factors are Gateway’s “relatively large” limits to its property lines of business. Nevertheless, A.M. Best has said that it recognises the substantial financial resources of the AT&T organisation.
Gateway’s ratings are not expected to be upgraded and/or its outlook revised within the next 12 to 24 months as its operating performance and capital position already have been considered in the rating process.
A.M. Best could downgrade the company’s ratings and/or revise the outlook if its Best’s Capital Adequacy Ratio score declines, operating performance and risk profile deteriorate, insured losses deplete capital, significant changes and turnover occur in its management team and/or risk management controls and tolerances or its parent’s ratings deteriorate.
Gateway was established in April 2014 following the implementation of Texas’s Senate Bill 734, which removed the regulatory barrier that did not allow captive insurers to operate in the state.
