AM Best has assigned a financial strength rating of ‘A’ (Excellent) and a long-term issuer credit rating of ‘a’ (Excellent) to Torreyana Insurance Company, a Vermont-based captive insurer for Vertex Pharmaceuticals.
The outlook for these ratings is ‘stable’.
These ratings reflect Torreyana's balance sheet strength, which AM Best assesses as very strong, along with its strong operating performance, neutral business profile, and appropriate enterprise risk management (ERM).
By (re)insuring Vertex's global liability and property exposures, Torreyana plays a strategic and critical role in Vertex's overall ERM, protecting the enterprise's assets.
The very strong balance sheet strength assessment of Torreyana is supported by the strongest level of risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio, as well as a conservative investment portfolio and adequate reserves.
Recent growth in surplus is largely supported by capital contributions from its parent, Vertex. Additionally, the captive has a highly rated, diverse reinsurance panel that is well-equipped to protect the company's balance sheet.
According to AM Best, Torreyana's strong operating performance is evidenced by consistently favourable combined ratios, supported by very low loss ratios based on Vertex's historical legacy loss experience placed into Torreyana upon establishment.
As a single-parent captive, it maintains minimal expense ratios and continues to explore expansion into additional coverages for the parent.
AM Best assesses the business profile as neutral, noting that Torreyana is diverse geographically and by product, offering several coverages for its global parent.
