AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Transmonde Services (Bermuda).
Transmonde is a single-parent captive that derives all its business from its publicly-traded parent company, Switzerland-based SGS SA.
The company provides professional, property, cyber, general and pollution liability coverages to subsidiaries of SGS.
The outlook of its credit ratings is stable.
The ratings reflect Transmonde’s balance sheet strength, which AM Best assesses as “very strong”, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
AM Best says “partially offsetting these rating factors are Transmonde’s high retentions and concentration in liability lines with loss severity potential, although the company has experienced historically favourable loss experience.”
Transmonde has maintained conservative underwriting leverage ratios, as surplus has remained strong to support its business volumes.
The company has posted low loss and loss adjustment ratios, which reflect SGS’ robust and effective risk management. Its relatively high per-occurrence retentions are mitigated by deductibles and conservative reserving practices.
