AM Best has affirmed the Financial Strength Rating (FSR)
of A++ (Superior) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “aa+” of the main subsidiaries of The Travelers
Companies, Inc. (TRV) (headquartered in New York, NY) [NYSE: TRV],
collectively known as Travelers Group (Travelers). In addition, AM
Best has affirmed the FSR of A++ (Superior) and the Long-Term ICRs
of “aa+” of Travelers Casualty and Surety Company of America (TCSA)
(Hartford, CT) and its separately rated affiliate, Travelers
Insurance Company of Canada (TICC) (Toronto, Ontario, Canada).
Concurrently, AM Best has affirmed the Long-Term ICRs and the
Long-Term Issue Credit Ratings (Long-Term IR) of “a+” of TRV and
its two wholly owned downstream holding companies, Travelers
Property Casualty Corp. and Travelers Insurance Group Holdings Inc.
(both headquartered in Hartford, CT). All outstanding securities
issued by the two downstream holding companies are guaranteed by
TRV. AM Best also has affirmed all other Long-Term IRs and
Short-Term Issue Credit Ratings (Short-Term IR) guaranteed by TRV,
as well as TRV’s indicative Long-Term IRs. The outlook of these
Credit Ratings (ratings) is stable.
Additionally, AM Best has affirmed the FSR of A (Excellent) and
the Long-Term ICR of “a” of The Dominion of Canada General
Insurance Company (Dominion) (Toronto, Ontario, Canada). The
outlook of these ratings is stable.
Lastly, AM Best has affirmed the FSR of A- (Excellent) and the
Long-Term ICR of “a-” of First Floridian Auto and Home Insurance
Company (First Floridian) (Tampa, FL). The outlook of these ratings
is stable. (Please see link below for a detailed listing of the
companies and ratings.)
The ratings of Travelers reflect the group’s balance sheet
strength, which AM Best categorizes as strongest, as well as its
very strong operating performance, favorable business profile and
appropriate enterprise risk management (ERM).
Historically, risk-adjusted capitalization has consistently been
strongly supportive of the group’s ratings and exceeds the
threshold for the strongest categorization by a wide margin, as
measured by Best’s Capital Adequacy Ratio (BCAR). The assessment of
the group’s balance sheet strength also reflects its stable loss
reserve position, the use of a comprehensive reinsurance program
and high quality reinsurance partners, as well as benefits from the
additional financial flexibility available through its ultimate
parent, TRV.
TRV reported favorable development of its loss reserves through
the first nine months of 2020 on a GAAP basis. AM Best expects that
the group’s reserves will continue to reflect its prudent approach
to the impact of societal trends and COVID-19 on claims
settlements, and does not anticipate any material impact on
risk-adjusted capitalization in the near term.
The group’s very strong operating performance reflects
consistently profitable results supported by typically strong
underwriting results and steady investment income. The group has
reported positive underwriting income in nine of the past 10 years,
with 2011 being the exception due to an increased amount of
catastrophes.
Based on 2019 direct premiums written, Travelers has the leading
market share in commercial lines and is the 10th-largest personal
lines writer in the United States. Overall, Travelers ranks as the
sixth-largest property/casualty (P/C) writer in the United States.
Travelers maintains a broad spread of risk in that it offers a wide
array of P/C coverages spread geographically in all 50 states, the
District of Columbia, Canada, England and Ireland.
The ratings of TCSA reflect its balance sheet strength, which AM
Best categorizes as strongest, as well as its very strong operating
performance, favorable business profile and appropriate ERM.
The ratings of TICC reflect its balance sheet strength, which AM
Best categorizes as strongest, as well as its strong operating
performance, neutral business profile and appropriate ERM. The
ratings also reflect the implicit support it receives from its
ultimate parent, TRV.
The ratings of Dominion reflect its balance sheet strength,
which AM Best categorizes as strongest, as well as its marginal
operating performance, neutral business profile and appropriate
ERM. The ratings also reflect the implicit support it receives from
its ultimate parent, TRV.
The ratings of First Floridian reflect its balance sheet
strength, which AM Best categorizes as very strong, as well as its
marginal operating performance, limited business profile and
appropriate ERM. The ratings also reflect the implicit support it
receives from its ultimate parent, TRV.
A complete listing of The Travelers Companies, Inc.’s FSRs,
Long-Term ICRs and Long- and Short-Term IRs also is available.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Elizabeth Blamble Senior Financial Analyst +1
908 439 2200, ext. 5603 elizabeth.blamble@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Michael Lagomarsino, CFA, FRM Senior Director
+1 908 439 2200, ext. 5810
michael.lagomarsino@ambest.com
Jim Peavy Director, Communications +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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