AM Best Affirms Credit Ratings of Through Transport Mutual Insurance Association Limited and Its Subsidiaries

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Through Transport Mutual Insurance Association Limited (TTB) (Bermuda) and its subsidiaries, TT Club Mutual Insurance Limited (TTI) (United Kingdom) and TT Club Mutual Insurance N.V. (TTNV) (Netherlands). TTB, TTI and TTNV are collectively known as the TT Club (the club). The outlook of these Credit Ratings (ratings) is stable.

The ratings of TTB reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings of TTI and TTNV reflect their strategic importance to TTB, and the implicit and explicit support that they receive from TTB, particularly in the form of comprehensive reinsurance protection.

TTB’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation, which is well in excess of the minimum required for the strongest assessment level, as measured by Best’s Capital Adequacy Ratio (BCAR). The club’s balance sheet strength also benefits from a relatively conservative investment strategy and a long track record of prudent reserving, with releases of overall reserves recorded in all financial years, except 2023. AM Best views TTB’s moderate dependence on reinsurance, used to manage the club’s capacity, as an offsetting balance sheet strength assessment factor. The associated risks are mitigated partially by the high credit quality of the club’s reinsurance partners, many of which TT Club has long-established relationships with.

TTB’s adequate operating performance is demonstrated by a five-year (2020-2024) weighted average return-on-equity ratio of 4.3%. TTB reported technical losses in 2023 and 2024, in part driven by higher reserves booked for U.S. bodily injury claims due to the elevated loss experience of this line in recent years. To mitigate the risk of adverse development in prospective years, management has been increasing the reserve margin, which it holds in excess of the best estimate reserves. In addition, TT Club elected to expense the cost of an information technology project upfront in years 2021 to 2024, rather than capitalising it on the balance sheet. These factors resulted in the company reporting a five-year weighted average combined ratio of 100.8%. The club’s overall earnings remain supported by modest investment returns, reflecting the conservative asset allocation.

TT Club is a specialist mutual insurance organisation, operating in the international transport and logistics industry. It offers property and liability risk covers for port, ship and logistics operators, and provides loss prevention and risk management services to its members. The club has a strong position in its niche market, which is highlighted by its excellent member retention and supported by its global presence.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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