A.M. Best has affirmed the financial strength rating of “A (Excellent)” and the long-term issuer credit rating of “a” of Transmonde Services Insurance Company, the single-parent captive of SGS.
Transmonde provides professional, general and pollution liability coverages to members of the International Association of Superintendents, a subsidiary of SGS, a Swiss company.
The captive has maintained “very conservative” underwriting leverage ratios, as surplus has remained strong to support its business volumes, according to A.M. Best.
Partially offsetting these positive ratings factors are Transmonde’s relatively high retentions and concentration in liability lines with significant loss severity potential, and its limited market profile as a single-parent captive.
A.M. Best noted that, while the ratings are stable, factors that could lead to positive rating actions include continued maintenance of Transmonde’s “excellent” risk-adjusted capitalisation and “consistent favourable” operating results at SGS.
