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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 29, 2017 01:12 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Transatlantic Reinsurance Company and its subsidiaries (collectively referred to as TransRe). In addition, A.M. Best has affirmed the Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) of “a-” of Alleghany Corporation (Alleghany) [NYSE: Y] and Transatlantic Holdings Inc. TransRe and Alleghany are headquartered in New York, NY.
Concurrently, A.M. Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” of RSUI Indemnity Company and its reinsured subsidiaries, collectively referred to as RSUI Group (RSUI) (headquartered in Atlanta, GA).
A.M. Best also has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” of Capitol Indemnity Corporation and its two subsidiaries, which operate under a pooling agreement, collectively referred to as CapSpecialty Insurance Group (CapSpecialty) (headquartered in Middleton, WI).
The outlook for each of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.)
TransRe’s ratings reflect its strong risk-adjusted capitalization, robust enterprise risk management and consistent operating performance. The ratings also reflect TransRe’s well-regarded business profile and its highly diversified book of business by product and geography. It continues to be A.M. Best’s expectation that while TransRe’s return measures are unlikely to be at the high end of the companies’ peer group, TransRe will continue to produce favorable results that are supportive of its ratings and with lower volatility relative to its peers over the course of the full cycle. Additionally, given the recent catastrophic events, A.M. Best’s expectation is that losses from Hurricanes Harvey, Irma and Maria will be within TransRe’s stated risk tolerances and also within A.M. Best expectations, as A.M. Best looks across the losses relative to the broader peer group. A.M. Best will continue to monitor the developments associated with these events and their impact on TransRe. Should there be a material deviation from expectations, A.M. Best will update the market with regards to its rating opinion on TransRe.
The ratings of RSUI continue to reflect the group’s strong risk-adjusted capitalization and excellent track record of superior underwriting results that have outperformed the industry. Although RSUI has significant catastrophe exposures and elevated equity leverage in its investment portfolio, both are closely monitored and managed as part of RSUI’s risk management planning.
CapSpecialty’s ratings recognize its strong risk-adjusted capitalization and its ongoing process of re-orienting its book of business to produce more stable results. CapSpecialty benefits from the implicit and explicit support of Alleghany, its ultimate parent.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed with stable outlooks for Transatlantic Reinsurance Company and its following subsidiaries:
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been affirmed with stable outlooks for the following members of RSUI Group:
The FSR of A (Excellent) and ICRs of “a” has been affirmed with stable outlooks for the following members of CapSpecialty Insurance Group:
The following Long-Term IRs have been affirmed with stable outlooks:
Alleghany Corporation—
— “a-” on $300 million 5.625% senior unsecured notes, due 2020
— “a-” on $400 million floating rate senior unsecured notes, due 2022
— “a-” on $300 million 4.9% senior unsecured notes, due 2044
Transatlantic Holdings Inc.—
— “a-” on $350 million 8% senior unsecured notes, due 2039
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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