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, based in Hamilton, Bermuda.
The outlook of these credit ratings remains stable.
As a single-parent captive, Transmonde writes a portfolio of professional, general and pollution liability risks for the insurance needs of SGS. SGS is a group specialising in inspections, verification, testing and certification across several industries worldwide.
A.M. Best categories Transmonde’s balance sheet strength as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
As of year-end 2018, Transmonde’s risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, was categorised as strongest.
The balance sheet strength also benefits from low underwriting leverage and good financial flexibility, which stems from the company’s affiliation to SGS SA, a publicly traded Swiss company.
A.M. Best explained the partially offsetting rating factors include the investment concentration in a single parental loan and the high dividend payments made to the parent over recent years.
Transmonde has a track record of strong operating performance, underpinned by excellent underwriting earnings and a stable level of interest income.
A.M. Best suggested that this is due to the lean operating model and robust loss controls in place, the company has maintained a very low expense ratio and loss ratio throughout the years.
