A.M. Best has assigned a financial strength rating of B (Fair) and the long-term issuer credit rating of “bb” to American Transportation Group Insurance (ATGI) Risk Retention Group, located in Raleigh, North Carolina.
The outlook assigned to these credit ratings (ratings) is stable.
A.M. Best explained it categorises ATGI’s balance sheet strength as weak, including its adequate operating performance, limited business profile and appropriate enterprise risk management.
ATGI’s weak balance sheet assessment reflects the organisation’s adequate risk-adjusted capitalisation, as measured by best’s capital adequacy ratio (BCAR), as of Q2 2019 and its limited financial flexibility and scale of operations.
A.M. Best assessed ATGI’s operating performance as adequate due to reasonable performance projections according to the organisation’s five-year business plan. ATGI’s business profile is assessed as limited, due to product line concentration in commercial automobile liability coverages.
ATGI’s operations are spread across a wide region of the US. ATGI’s ERM is assessed as appropriate due to the organisation’s evolving risk management framework, stringent underwriting criteria and prospective policyholder assessments that are utilised to identify and retain quality risks.
